by Palliser executives confirmed the deal in a memo sent to employees on Tuesday
WINNIPEG, Manitoba — Upholstery manufacturer Palliser has been purchased by long-time supplier and strategic partner MotoMotion, Palliser officials announced to their employees on Tuesday.
The deal was completed May 29, according to a memo from Pallister Furniture executives obtained by Home News Now. The memo from Palliser Holdings Executive Chairman Art DeFehr and President and CEO Peter Tielmann does not mention a specific purchase price or other details about the transaction including the future of the company’s Mexico manufacturing facilities.
However, the Palliser executives described MotoMotion as a publicly listed company with more 7,000 employees and manufacturing operations across Vietnam, China and Cambodia. Founded in 2002, it is part of China-based Changzhou Jiangxin Duju Smart Home Co., Ltd., also known as HHC Group, and has a U.S. presence in Arcadia, California.
“Its vertically integrated business model, global manufacturing footprint, and strong focus on innovation have made it one of the leading companies in the furniture industry,” the memo noted. “Combined with an established North American sales, service, and distribution network, MotoMotion brings significant resources and capabilities to support the future growth of the Palliser brand. Critically, their investment in Palliser is an investment in the brand’s North American presence — including the Winnipeg head office and the teams that have built Palliser’s reputation over generations.”
The deal comes about just over a month after Palliser sent a letter to dealers hinting at an expanded partnership with MotoMotion. Home News Now published that letter during the April High Point Market and has since reported on other possibilities involving a partnership between the two companies.
The executives said that Palliser’s home base of Winnipeg will continue to serve “as a key center for product development, design, innovation, marketing, sales, customer service, and brand leadership. The knowledge, experience, and relationships built here over many years will remain essential to the future success of the Palliser brand.”
They also noted that there are no immediate changes to various roles or to the Winnipeg head office team as a result of the purchase.
“MotoMotion has been clear that the people and expertise here are central to the future they are investing in,” the memo continued.
It went on to state that the Canadian manufacturing operations are not part of the transaction as they are owned and operated by EQ3. This company, they noted, will continue as a separate entity “with its own brand, leadership and direction.”
They also thanked the many employees that have made Palliser a success over the years.
“For generations, talented, hardworking, and dedicated employees have built this company and helped establish Palliser as one of the most respected furniture brands in North America. Your commitment to our customers, products, and values has been the foundation of the Palliser trajectory of over 80 years, and for that we are deeply grateful.”
The memo offered an optimistic outlook for both companies, particularly given their long-time relationship and business partnership over more than 10 years.
“By combining the heritage, customer relationships, and market presence of Palliser with the manufacturing capabilities, innovation-driven culture, and global resources of MotoMotion, we see significant opportunities to strengthen the brand, accelerate product development, improve speed to market, and support long-term growth.”
“As we move forward, we are optimistic about what lies ahead,” the memo continued. “This is not the beginning of a new relationship, but the continuation of a partnership built over many years. During our decade-long relationship with MotoMotion, we have seen firsthand their commitment to innovation, manufacturing excellence, and long-term investment.
Attempts to reach Tielmann for further comment were unsuccessful. Home News Now also has reached out to MotoMotion Chairman Catherine Lee for comment.
