L2 Capital has completed the acquisition of Winchester Carpet and Rugs, an online retailer of area rugs.
Winchester Carpet and Rugs is an online specialty retailer of area rugs and other complementary home décor items. The company has more than 180,000 SKUs and generates annual page views in excess of 46 million from consumers and professional interior designers throughout North America. Rugs Direct has approximately twenty-five employees and is headquartered near Washington, DC in Winchester, VA (www.Rugs-Direct.com).
“L2 Capital is a terrific partner for Rugs Direct due to their in-house operational and e-commerce expertise, as well as their external consumer product and direct-to-consumer marketing resources,” said David Craig, Co-Owner of Rugs Direct.
L2 Capital Partners is a lower middle market private equity family office that makes control and minority investments in companies that have revenues from $10 million to $75 million and EBITDA from $2 million to $8 million. Sectors of interest include technology enabled services; business services; e-commerce/direct marketing; consumer products; manufacturing; and environmental products. L2 Capital is headquartered in the Philadelphia suburb of Radnor, PA (www.L2Capital.net).
“We are very excited to be able to support such a successful company and group of managers,” said Bob Levine, Managing Partner of L2 Capital. “Together, with the assistance of the world-class board of directors we’ve assembled, we’re optimistic we’ll be able to build upon the company’s current growth trajectory.”
“This partnership places Rugs Direct in an outstanding position for growth and continued leadership in the home-décor market,” added Randy Kremer, Rugs Direct’s other Co-Owner. “We’ve learned a lot and have been very successful in our first 20 years of e-commerce. In partnership with L2, the sky’s the limit.”
Columbus, OH-based Oxer Mezzanine Partners (www.oxercapital.com) and Charlotte, NC-based Salem Investment Partners (www.salemip.com) provided debt financing and co-invested in the transaction.
Phoenix-based Dinan Capital Advisors (www.dinancompany.com) was the financial advisor to Rugs Direct.
© 2017 Private Equity Professional | April 28, 2017
