furniture retailer

Thomas H. Lee Adds to Art Van

by

Art Van Furniture, the Midwest’s No. 1 furniture and mattress retailer and a portfolio company of Thomas H. Lee Partners, has acquired two privately-held Pennsylvania furniture companies, Pittsburgh-based Levin Furniture and Altoona-based Wolf Furniture.

“Today’s acquisitions of these two well-established furniture retailers – both intricately woven into the fabric of their communities – underscores a transformative new era of thoughtful expansion at Art Van Furniture,” said Kim Yost, President and CEO of Art Van Furniture. “From their commitment to their customers to their long-standing histories and corporate cultures, Levin and Wolf are a perfect fit for Art Van’s growing family of brands.

Levin Furniture was founded by Sam Levin in 1920 and is currently led by his grandson, Robert Levin, who serves as President. Art Van’s acquisition of the 97-year-old, family-owned and operated business will add 35 furniture and mattress showrooms and clearance centers in Northeastern Ohio and Southwestern Pennsylvania to its portfolio of brands and showrooms (www.levinfurniture.com). “This exciting new chapter for Levin Furniture comes as we near the 100th anniversary of my grandparents’ very first store,” said Mr. Levin. “Becoming part of the Art Van Furniture family of retailers will allow Levin to cement future growth, continue to be of service to the community and provide a superior shopping experience.”

Wolf Furniture was co-founded in 1902 by Charles Wolf and Jon Fox, and is currently led by CEO and fourth-generation family member, Doug Wolf. In 2015, Wolf Furniture acquired Maryland-based Gardiners Furniture, and rebranded the stores Gardiner Wolf Furniture. Wolf Furniture operates 18 furniture showrooms in Pennsylvania, Maryland, and Virginia, which will be added to Art Van Furniture’s portfolio (www.wolffurniture.com). “The timing was right, and the opportunity presented itself,” said Mr. Wolf. “The heart and soul of our 115-year-old company will remain the same with this acquisition, and Wolf Furniture will benefit from Art Van’s enormous buying power, warehouse and distribution capacity and services.”

With the acquisitions of Levin and Wolf, Art Van becomes a top ten national furniture retailer based on sales, with 176 stores which includes 18 Art Van franchise stores in nine states and $1.3 billion in expected annual sales. The acquisitions will also add 1,900 new employees to Art Van’s current employee base of 3,600, bringing the total to 5,500 associates. Levin and Wolf Furniture will both maintain their names and all current management teams plus staff will remain in place.

Art Van was founded in 1959 by Art Van Elslander and acquired by Thomas H. Lee Partners in March 2017. The company is headquartered in the Detroit suburb of Warren, MI (www.artvan.com).

Thomas H. Lee Partners was founded in 1974 and is one of the oldest private equity investment firms in the United States. Industries of interest include consumer and healthcare, media and information services, and business and financial services. The firm is based in Boston (www.thl.com).

RBC Capital Markets was the financial advisor to Art Van Furniture.

© 2017 Private Equity Professional | November 28, 2017

Art Van Furniture Goes to THL

by

Thomas H. Lee Partners (THL) has agreed to acquire Art Van Furniture, the Midwest’s largest furniture retailer and one of America’s largest independent furniture retailers. The transaction is expected to close by the end of February.

Art Van Furniture operates more than 100 stores throughout Michigan, Ohio, Indiana, Illinois and Iowa, including freestanding Art Van PureSleep mattress stores, Art Van Flooring stores, and Art Van Furniture franchise locations, as well as a full service e-commerce website. The company was founded in 1959 by Art Van Elslander – the sole shareholder prior to the sale – and is headquartered in the Detroit suburb of Warren, M I (www.artvan.com).

“The heartbeat of any organization is its people,” said Mr. Van Elslander. “I am proud of Art Van Furniture’s history and what we have accomplished. The time for an ownership transition is right and the opportunity presented itself. There is still much I want to do, and I feel confident knowing the company and its people will be in the very best of hands for continued growth and success.”

According to THL, the senior management team of the company – led by CEO Kim Yost; Gary Van Elslander, President of Art Van Furniture; and David Van Elslander, President of Art Van PureSleep – will continue with the company.

“Over nearly six decades, Art Van Furniture has continuously realized Mr. Van’s vision and set the standard for excellence in furniture retail in the Midwest. We look forward to working with the entire team at Art Van as we continue to aggressively grow this outstanding brand,” said Jeff Swenson, Managing Director at THL.

Thomas H. Lee Partners was founded in 1974 and is one of the oldest private equity investment firms in the United States. Industries of interest include consumer and healthcare, media and information services, and business and financial services. Since its founding, THL has raised approximately $20 billion of equity capital and invested in more than 130 businesses with an aggregate purchase price of more than $150 billion. The firm is based in Boston (www.thl.com).

“After thoughtful consideration and strategic evaluation, we determined that Thomas H. Lee Partners is absolutely the right ownership partner for Art Van,” said Mr. Yost. “We are collectively committed to building on Mr. Van’s tremendous legacy as we enter this new chapter of the Art Van Furniture story.”

RBC Capital Markets was the financial advisor to Art Van Furniture and Goldman Sachs was the financial advisor to THL.

© 2017 Private Equity Professional | January 26, 2017