TorQuest Partners has acquired Prepac Manufacturing, a maker of ready-to-assemble (RTA) home furniture.
Prepac designs and manufactures bedroom furniture, home office furniture, living room furniture, multimedia furniture, entryway furniture, and storage cabinets. The company maintains a just-in-time inventory and its order-to-ship times, on thousands of daily orders, range from 6 to 48 hours.
Prepac sells and drop ships its products exclusively through online retailers including Amazon, Wayfair and Walmart. Prepac was founded in 1979 by Steve Simpson and is based near Vancouver in Delta, BC (www.prepacmfg.com).
“Steve Simpson and the management team have steered the business on an impressive growth trajectory over many years. The expertise within the business and operational excellence give us great confidence that the business will continue to thrive,” said Rachel Skelton, a principal at TorQuest.
TorQuest was founded in 2002 and has over C$2 billion of equity capital under management. In June 2016 the firm held an above-target final closing of TorQuest Partners Fund IV at the fund’s hard cap of C$925 million.
Prepac’s senior management team, led by President Jim Mathison, co-invested in this transaction with TorQuest. Mr. Simpson has also retained a significant investment in the business and will join the company’s board of directors. “Our focus on our retail customers and end consumers will remain core to our business strategy as we continue to grow our market share in North America,” said Mr. Mathison. “We see an incredible opportunity for our business and our customers in this thriving marketplace.”
“This is the eighth platform investment for TorQuest Partners Fund IV and continues our well-established strategy of building relationships with successful Canadian entrepreneurs to help transition their businesses over time and support their management teams in the next phase of growth,” said Daniel Sonshine, a partner at TorQuest.
TorQuest is headquartered in Toronto (www.torquest.com).
© 2019 Private Equity Professional | March 14, 2019
