Market

The M&A environment remains open and brisk. The announcement of Lee’s sale to American Leather indicates that the market is indeed open for business. Activity and strengthening of good companies is positive news for the entire industry.

The Stump & Company team feels the merger market remains vibrant with a strong balance of buyers and sellers. One public announcement in particular is worth noting: LacquerCraft's purchase of Grand Manor is a signal that the market is open, and indicates the attractiveness of domestic upholstery.

The High Point Market continues to be a “can’t miss” show for residential furnishings. This year was no exception, and exhibitors felt that traffic was good and order writing was consistent with prior years. Positivity prevailed and exhibitors and attendees alike were upbeat in this economic climate, despite the noise and confusion of state and national politics.

We are pleased to welcome Stuart (Stump) Mullens to our firm as Vice President and a principal in the firm. Stuart continues the 3rd generation development of future leaders of The Stump Companies.

Stump & Company love the High Point Market in the fall when the weather is clear and cool, and this year we got a perfect Chamber of Commerce commercial: blue skies, calm winds and nice temperatures. Also we had strong attendance, good buying attitudes and no stock market crash.

Contract/Commercial furniture folks are upbeat, as business is strong across all sectors, and most people believe we have another 2-4 years of growth ahead of us.

Optimism at the market was palpable. Most owners mentioned looking 1-2-3 years down the road and seeing encouraging signs for increased sales growth and shareholder value creation. With these good feelings comes renewed chatter in the Merger & Acquisition market. Many Private Equity firms want out of existing positions, while plenty of others want in. Some will want to add to existing portfolios to bolster their holdings. Strategic acquisitions are likewise heating up.

Mergers & Acquisitions are front and center as the general economy is getting stronger, the furniture trends are positive, and capital remains relatively cheap. Strong companies are buying weak ones, large companies are buying small ones, and Private Equity is furiously looking for deals given their huge pool of available funds.

Stump & Company had a terrific and upbeat six days walking through the International Home Furnishings Market complex, and seeing much of the 12 million square feet of exhibition space spread over 180 buildings, hosting over 2,000 companies and more than 75,000 attendees.

The Vegas market has a very strong mattress/bedding presence, and the World Market Center has done a good job bringing energy and focus to this sector. With Stump & Companys recently announced sale of Jamison Bedding to Solstice Sleep Products, we were busy on the bedding floors actively talking‎ with buyers and sellers.

Our 48 hours in Las Vegas for the HD (hospitality and design) show were exciting and full of upbeat conversations. Most companies are enjoying solid growth‎ as hotels are refurbishing and new construction is heating up.