Hicks Muse to Acquire Home Interiors & Gifts

Hicks, Muse, Tate & Furst Inc. agreed to buy most of Home Interiors & Gifts Inc. for $920 million, betting that the company can become one of the nation’s largest direct-sales marketers. Hicks Muse said the acquisition, for $170 million in cash, $275 million in equity and $475 million in assumed debt, will give the closely held investment firm about 65% of Home Interiors, which had 1997 sales of $468 million. It sells products nationwide through about 48,000 independent representatives. Both companies are based in Dallas. Since its creation in 1989, Hicks Muse has completed or has pending more than 200 purchases, mostly in the media, food and manufacturing industries, valued at about $28 billion. This is its first venture into direct sales.