Best Buy Acquires California-Based Kitchen And Bath Retailer
The transaction was expected to close in mid-January, after which Pacific Sales would operate as a wholly-owned, indirect subsidiary of Best Buy.
Best Buy said the gross cash purchase price was $410 million, subject to customary closing adjustments.
“This acquisition enhances our ability to grow with an attractive customer base and premium brands using a proven and successful showroom format,” Brian Dunn, president of Retail - North America for Best Buy, said in a statement. “Utilizing the existing store format, we expect to expand the number of stores in order to capitalize on the rapidly growing high-end segment of the U.S. appliance market.” Pacific Sales has achieved 15% average revenue growth for the past five years, he noted.
Pacific Sales caters to home-remodeling customers and has a dedicated builder sales staff. Founded in 1960, the company specializes in the sales of premium kitchen appliances, plumbing fixtures, home entertainment and home furnishings, including such brands as Kohler, Hansgrohe, Sony and Pioneer Elite.
At the time of the announcement, Pacific Sales employed about 350 people and projected its revenue for calendar year 2005 would be about $320 million.
Pacific Sales stores are open from 10 a.m. to 6 p.m., Tuesday through Saturday.
Jerry Turpanjian, founder, president and CEO of Pacific Sales, planned to retire from his current role upon the close of the acquisition but will continue to serve as a retained consultant to the business.
David Sheek, general manager, and Glenn Merlian, vice president and operations manager, were to remain at Pacific Sales in their current roles. Also, Phil Lee, an 11-year Best Buy veteran who is currently senior vice president of Magnolia Audio Video, will head the Pacific Sales management team and focus on its growth strategies.
For more information, visit Pacific Sales' Web site, www.pacificsales.com.