Toano, Va. -- Flooring retailer Lumber Liquidators said Friday it will acquire certain assets of Sequoia Floorings in order to strengthen its mill-direct relationships and shore up its long-term sourcing strategies.
Sequoia, a trading company, had provided product quality and development services on approximately 40% of Lumber Liquidators’ 2010 merchandise purchases, primarily those in Asia.
As part of the transaction, the company will be opening a representative office in Shanghai upon approval of its application to the Chinese government, expected to occur in October.
Terms of the transaction include $5 million in cash, plus other considerations totaling an $8 million deal
Lumber Liquidators’ 2011 outlook has been revised from 40 to 44 planned new store locations for the fiscal year to 40 to 42 new locations.