HICKORY, N.C. — HS Manufacturing, a subsidiary of Hickory Springs Manufacturing, has sold its wood fabrication business to Precision Materials while entering into a strategic alliance with Precision for long-term supply of the related components.
The deal closed March 31; the purchase price was not disclosed. In a release, HSM said the deal was part of an “ongoing strategy to focus resources on its core business operations that offer distinct competitive advantages to its customers across a variety of market sectors.”
“The move will allow HS to source fabricated wood components more competitively by leveraging Precision’s core competency and far-reaching commodity purchasing relationships.”
Precision will assume operations at HSM’s Blue Ridge facility in Hickory, N.C., where the fabricated wood components are currently manufactured, along with some of HS’ bedding and fabricated foam components. HS has relocated its bedding and fabricated foam component operations to other HS bedding and furniture facilities, “creating manufacturing efficiencies and providing additional value to its customers,” it said.
“This divestiture further demonstrates our commitment to executing on our strategic plan to continually grow our core businesses by concentrating on the competencies and business lines that truly set us apart in the marketplace,” said HSM President and CEO Mark Jones.
“Over the past 77 years, HSM has grown into one of the nation’s largest integrated manufacturers, and as we continue to become a more comprehensive solutions provider for our customers, this move will help solidify our position as a trusted and reliable domestic supplier that offers value-added solutions for the many industries we serve.”
Based in Taylorsville, North Carolina, near HSM’s headquarters in Hickory, Precision is a contract manufacturer for several industries and market sectors, including furniture, bedding and point-of-purchase displays. The company fabricates woods and plastics, and provides furniture assembly, machining and specialized crafting services.
With the new alliance, Precision is expanding its capabilities, gaining access into the transportation sector and increasing its value to customers, “while allying us with a company that has become one of the nation’s largest integrated manufacturers,” said Scott McHugh, president and chief executive officer of Precision Materials.
“HSM is relentlessly customer-focused and our relationship will heighten both of our abilities to continue to provide the industries we serve with quality products and great customer service.”
No employees will be displaced due to the transaction. HSM will move some to other HS furniture and bedding facilities, while those that remain at the Blue Ridge facility will join the Precision team. The transaction was structured to ensure no interruption in service to customers, vendors or employees. HSM said.
The privately held HSM operates more than 25 manufacturing plants in 13 states. In addition to its core furniture and bedding markets, it serves customers in transportation, packaging, healthcare, apparel and other industries.
Precision is a processor of wood components and supplies primarily to the furniture, industrial shelving, and store fixture industry sectors. It operates three facilities in North Carolina and one in Alabama.