Gabriel Holding A/S has agreed to sell its European FurnMaster furniture manufacturing business to a wholly owned subsidiary of Leggett & Platt, Incorporated (NYSE: LEG), according to a press release from the Danish company.

The transaction covers the shares in two subsidiaries — UAB FurnMaster in Lithuania and FurnMaster Sp. z o.o. in Poland — as well as the dedicated FurnMaster division within Gabriel A/S, headquartered in Aalborg, Denmark. The buyer will assume responsibility for the employees, assets, and liabilities associated with those operations.

The initial purchase price has been set at DKK 67.3 million (approximately €9 million), with a conditional deferred cash payment of up to DKK 7.5 million (approximately €1 million) possible depending on certain conditions.

Gabriel Holding's Mexican FurnMaster business is not included in the deal and remains available for sale.

Gabriel Holding stated in August 2024 that it would pursue a full or partial divestment of its furniture manufacturing operations as part of a revised growth strategy focused on its global textile business. The company said the transaction strengthens its balance sheet and allows it to concentrate on textile operations.

Leggett & Platt's Work Furniture business operates locations in North America, Europe, and Asia, and already owns Trio Line in Poland. The transaction remains subject to customary closing conditions.

Gabriel Holding was advised by Deloitte Corporate Finance and DLA Piper.