Palliser, complainant in furniture import case, acquired by China-based MotoMotion

WINNIPEG, Man. , Palliser, the Winnipeg upholstery manufacturer that launched a major Canadian trade case against upholstered seating imports from China and Vietnam, has been acquired by longtime supplier and strategic partner MotoMotion, a company tied to China-based Changzhou Jiangxin Duju Smart Home Co., Ltd., also known as HHC Group.

The deal was completed May 29, according to a memo from Palliser Holdings Executive Chairman Art DeFehr and President and CEO Peter Tielmann obtained by Home News Now. Terms of the transaction were not disclosed. The memo described MotoMotion as a publicly listed company with more than 7,000 employees and manufacturing operations in Vietnam, China and Cambodia, with a U.S. presence in Arcadia, California.

The acquisition is notable because Palliser was the complainant in Canada’s 2020 trade investigation into certain upholstered domestic seating from China and Vietnam. The Canada Border Services Agency said it received Palliser’s complaint on Oct. 16, 2020, alleging that imports from the two countries had been dumped and subsidized, causing injury and threatening further injury to Canadian producers.

The Canadian International Trade Tribunal later found that dumping and subsidizing of certain upholstered domestic seating from China and Vietnam had caused injury to the domestic industry. In its Sept. 2, 2021, release, the tribunal said anti-dumping and countervailing duties would be collected by the Canada Border Services Agency and identified Palliser Furniture Ltd. of Winnipeg as the complainant.

Palliser’s complaint was supported by several Canadian producers, including EQ3 Ltd., Fornirama Inc., El Ran and Jaymar Furniture, according to CBSA’s statement of reasons. CBSA also noted that Palliser was founded in 1944 and manufactured upholstered domestic seating at its Winnipeg facility.

Home News Now reported that Palliser’s Winnipeg base will continue as a centre for product development, design, innovation, marketing, sales, customer service and brand leadership. The memo also said there would be no immediate changes to various roles or to the Winnipeg head office team as a result of the purchase. Canadian manufacturing operations were not included in the transaction because they are owned and operated by EQ3, which will continue separately, according to the report.

The transaction follows a period of liquidity and supply challenges at Palliser. In April, Home News Now reported that Palliser had told dealers it was working with MotoMotion to stabilize supplier relationships and accelerate material flow back into its factories after payment timing issues disrupted raw material availability and delayed orders.

MotoMotion and Palliser have had a supplier relationship for more than a decade. In the employee memo cited by Home News Now, Palliser executives framed the acquisition as a continuation of that partnership and said MotoMotion’s investment was also an investment in Palliser’s North American presence, including its Winnipeg head office.