NEW YORK, NEW YORK

From Bloomberg News

Building permits climbed in October to the highest level in more than five years, signaling the U.S. residential real-estate market will strengthen in 2014. 

Applications for new construction rose 6.2 percent to a 1.03 million annualized rate, beating all forecasts in a Bloomberg survey of economists and the highest since June 2008, according to Commerce Department figures issued today in Washington.  

Other data showed property values last quarter increased by the most in more than seven years. The data indicated multifamily units are poised to lead the advance in homebuilding in coming months as construction companies look past higher borrowing costs and proceed with larger projects.  

Another report showed consumer sentiment remains fragile heading into the holiday shopping season, a sign of growing concern the economy will be set back by political gridlock in Washington. 

"Housing will still contribute to growth," said Brian Jones, a senior U.S. economist at Societe Generale in New York, whose permits forecast was the highest in a Bloomberg survey. "We have had a backup in interest rates, but I don't think the backup has been large enough to really choke off housing." 

Stocks rose as the sustained rebound in housing helped offset the unexpected drop in household confidence. The Standard & Poor's 500 Index climbed 0.1 percent to 1,805.08 at 12:15 p.m. in New York. The S&P Supercomposite Homebuilding index jumped 3.6 percent. 

The median estimate of 47 economists surveyed by Bloomberg was for a 930,000 rate in permits. Projections ranged from 875,000 to 985,000.    

NEW YORK, NEW YORK

KPS Capital Partners, LP ("KPS") has announced the formation of a new company, Heritage Home Group, LLC, that has acquired substantially all of the assets of Furniture Brands International, Inc., a world leader in designing, manufacturing, sourcing and retailing home furnishings. Heritage Home Group acquired the assets free and clear of substantially all liens, claims, encumbrances and interests through an auction conducted as part of a sale process under Section 363 of the United States Bankruptcy Code. The U.S. Bankruptcy Court for the District of Delaware formally approved the transaction on Nov. 22, 2013.  

Heritage Home Group will operate as an independent company with the long-term support of KPS, a private equity investor with more than $6.0 billion of assets under management and a long track record of successfully transforming businesses and creating profitable, growing companies. Heritage Home Group owns an iconic collection of the furniture and design industry's leading brands, including Thomasville, Broyhill, Lane, Drexel Heritage, Hickory Chair, Henredon, Pearson, Lane Venture, Maitland-Smith and LaBarge.  

Heritage Home Group launches as a well-capitalized company, with no legacy obligations and access to the financial resources necessary to execute its ambitious business improvement and growth plans.  

KPS also announced that Ira Glazer has been named president and chief executive officer of Heritage Home Group. He is an executive with three decades of successful turnaround experience and has previously partnered with KPS on a very successful platform.  

Raquel Vargas Palmer, a Partner of KPS, said, "This is the beginning of a new era for Heritage Home Group and its brands. The company has a new owner, a new CEO, a new Board of Directors and a new strategic direction. Heritage Home Group launches with truly iconic brands, a solid financial structure and access to KPS' financial resources and expertise.  

We strongly believe in the fundamental value of this business and the significant growth potential that can be unlocked through focused investment in our brands. We are proud to welcome the many Furniture Brands associates who are joining Heritage Home Group, and we look forward to working together to build a thriving and profitable company. 

"KPS is delighted that Ira Glazer will serve as president and CEO of Heritage Home Group. He is an outstanding business leader with a demonstrated track record of transforming and growing companies. We have worked successfully with Ira in the past and look forward to collaborating again to build the value of Heritage Home Group.  

"We are grateful to all of Furniture Brands' stakeholders for their assistance and cooperation through the transaction process and the formation of Heritage Home Group," Palmer concluded.  

Glazer said, "I am honored to lead Heritage Home Group. Free of Furniture Brands' burdens and liabilities, and with a rock-solid balance sheet and many outstanding associates who are joining our company, we have an exceptional opportunity to build a true industry leader. I am also pleased to partner and collaborate again with KPS, a firm that has distinguished itself as a global leader in turnaround investing and is ideally suited for this exciting venture.  

"I would like to commend Ralph Scozzafava, who informed us this morning that he resigned as CEO of Furniture Brands, for his efforts over the past several years. Ralph worked hard to ensure that Furniture Brands' assets would be well-positioned for growth and we thank him for his contributions," Glazer concluded.  

GE Capital, Corporate Finance and PNC Bank, N.A. provided financing for the transaction.  

Proskauer Rose LLP acted as legal counsel to KPS with respect to the transaction.  

Thereafter, upon achieving stability and profitability, KPS focuses on growing its businesses, both organically and through strategic acquisitions. KPS portfolio companies have aggregate annual revenues of over $7.6 billion, operate 87 manufacturing facilities in 25 countries, and employ approximately 31,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail. Visit the website.  

POTTSTOWN, PENNSYLVANIA

Alfresco Home, the exclusive North American distributor of the "Fornetto" Wood-Fired, Dual Purpose Oven and Smoker is proud to introduce Fornetto Premium Hardwood Lump Charcoal and Fornetto European Smoking Chips. 

Alfresco Home, a designer and manufacturer of distinctive casual furniture, garden accents and outdoor gourmet products, has partnered with Garth Industries and leading manufacturers worldwide to add a full slate of accessories to the recently introduced Fornetto Ovens. Adding the premium hardwood lump charcoal and smoking chips expands the accessory product line for the Fornetto beyond the high quality tools, ceramic cookware and melamine dinnerware collections recently established. 

Joseph Cilio, founder and CEO, said, "We are very excited about the Fornetto product line. It has far surpassed our targets in the first 10 months and the introduction of the natural lump charcoal and smoking chips reflects our commitment to complete the range of Fornetto accessories as the brand develops for our retailers and their consumers."   

The charcoal, made in Paraguay from Quebracho hardwood trees, is created in adobe style brick ovens using traditional methods. The manufacturing meets international certification on environmental standards. The result is a high quality 100 percent natural hardwood charcoal free of chemical additives and debris. The lump charcoal, sold in 20 lb. bags, burns clean at high temperatures, does not spark and emits less smoke than many common hardwoods.   

Anthony Cilio, executive vice-president who manages product development at Alfresco Home, said, "When we had the opportunity to source smoking chips from fine European wine and cognac barrels, I was all in! The chip manufacturing process begins once the porous oak wood barrels have completed their last vintage. They are dried using a natural process, which locks in the flavor and aroma without use of any additives. The barrels are then shredded to make the fantastic, flavored chips."     

Adding the chips for use with our Fornetto slide ventilation system and smoker box enhances the essence of the foods. The three flavored chips include Muscatel, a delicious wine made from the Muscat grape variety. It's perfect for adding sweetness to poultry and desserts. Cognac, a fortified wine made from white grape strains grown near the town of Cognac in southwestern France, is a perfect flavor to pair with seafood, meats or vegetables. Lastly, Red Wine chips have a highlighted taste and aroma as the oak barrels have combined with the red wine over time. Red wine chips are especially complementary to meats and pork. 

Joseph Cilio goes on to say that, "The beauty of the Fornetto lump charcoal and chips is that, while they are surely compatible with our Fornetto ovens, the marketplace has a broad collection of charcoal-fueled grills and smokers that can use the high quality, high flavors of our Fornetto product."  

The charcoal and chips will be available to ship throughout North American in December of 2013, and distribution points are being set up as well. Contact Patti Geltman, at (610) 705-8808 or pg@alfrescohome.com. 

Visit the website.