Lumber Liquidators Buys Assets of Supplier

Toano, VA, Sept. 30, 2011 -- Lumber Liquidators said it has agreed to acquire certain assets of Sequoia Floorings relating to operations in China for $8 million, including $5 million in cash.

Sequoia supplied approximately 40% of Lumber's merchandise last year, mostly in Asia.

The company said the acquisition strengthens its mill direct relationships for its long-term sourcing strategy.

"By entering into this transaction, we will be able to better control product cost and quality through our own international sourcing operations, and further strengthen our value proposition and increase our competitive position," said CEO Jeffrey Griffiths.

Additionally, we believe that this acquisition will allow us to expand operating margin, while at the same time provide greater flexibility in our marketing programs to help us attract consumers with aggressive opening price points."

The company also reduced both revenue and earnings guidance for the second half of 2012 as well as its guidance on new store growth from 40-44 stores to 40-42 stores for 2011.