Furniture makers agreed on $489-million merger.

Lane Co., based in Altavista, Va., and Interco of St. Louis, a consumer-products producer and retailer of Ethan Allen and Broyhill furniture and home furnishings, announced that under a $489.3-million deal, Interco would swap 1.5 common shares for each of Lane’s 8.03 million common shares outstanding. Interco began its pursuit of Lane last month, but Lane rejected two previous proposals as inadequate.