La-Z-Boy Inc has signed an agreement to acquire the licence for the La-Z-Boy brand in the UK and the Republic of Ireland from Furnico Ltd, which has been La-Z-Boy’s sales and distribution partner in the market for the past eight years.

The annual wholesale revenue for this business is approximately $42m (£34m), based on current exchange rates. Due to the licensing agreement currently in place today, La-Z-Boy Inc already captures approximately half of the sales volume.

The agreement will become effective on 1st January 2017, and its results will be reported in the company’s upholstery segment. The existing Furnico business outside of the La-Z-Boy license will continue its normal operations.

Based in Maidenhead, La-Z-Boy UK Ltd will be led by Keith Wilson, who until recently was with Calligaris, serving as director for its UK and Ireland business. He will work closely with Jeff Lillich, the head of La-Z-Boy’s Europe, Middle East and Africa business. A team will be recruited to support the growth of the business and its existing customers.

Doug Collier, senior vice president, chief marketing officer and president international, La-Z-Boy Inc, says: “Furnico has done an amazing job in growing the business and we intend to further enhance our position in the market by making investments in the brand and our digital presence. We thank David Winter, Paul Riding and the rest of the Furnico team for the outstanding work they have done, and look forward to a great future for the business.”