ready-to-assemble furniture

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

J.W. Childs has acquired Walker Edison, a supplier of ready-to-assemble furniture to global e-commerce platforms, from co-founders Brad Bonham and Matt Davis, and Caltius Structured Capital. Mr. Bonham and Mr. Davis are retaining a significant equity ownership interest in partnership with J.W. Childs.

Walker Edison’s products are available in a range of styles from traditional and transitional to contemporary and modern industrial. The company’s products include living room furniture (TV consoles, TV stands, coffee tables, accent tables, and storage furniture); home office furniture (glass, metal, and wood desks); bedroom furniture (wood and metal beds); dining furniture (tables and seating); occasional furniture; and outdoor and patio furniture.

Walker Edison sells its products through e-commerce and traditional retailers. The company, led by CEO Brad Bonham, was founded in 2006 and is based in Salt Lake City (www.walkeredison.com).

“We are very excited about our new partnership with J.W. Childs, whose operational expertise will allow us to enhance our leading market position and accelerate growth in existing and new categories,” said Mr. Bonham.

“Walker Edison has developed an impressive data-driven, design, sourcing and logistics operation, which allows for integrated partnerships with rapidly growing customers,” said J.W. Childs Partner David Fiorentino. “We are thrilled to work with management to accelerate growth and explore new opportunities.”

J.W. Childs invests in middle market companies based in North America. Sectors of interest include consumer products, specialty retail and healthcare. The firm was founded in 1995 and is based in the Boston suburb of Waltham, MA (www.jwchilds.com).

In November 2016, Caltius made a mezzanine debt and significant minority equity investment in Walker Edison as part of a transaction that backed the management buy-out of an inactive partner. “Caltius was the right partner for us over the past two years, helping us achieve tremendous growth,” added Mr. Bonham.

Caltius invests from $7 million to $50 million in junior capital (subordinated debt and minority equity) in businesses with $15 million to $250 million of annual revenue and at least $3 million of cash flow. Sectors of interest include business, consumer, and healthcare services; consumer products; specialty manufacturing; specialty staffing; and tech-enabled services. Caltius is headquartered in Los Angeles (www.caltius.com).

“We enjoyed our partnership with Walker Edison and wish the team continued success going forward,” said Caltius Managing Director Gavin Bates. “The relationship we developed with Brad Bonham and the Walker Edison team and the company’s successful growth during our partnership demonstrates our approach to working with founders and entrepreneurs who seek growth capital, but do not wish to cede operational control.”

Lincoln International (www.lincolninternational.com) was the financial advisor to Caltius and Walker Edison on this transaction.

© 2018 Private Equity Professional | September 27, 2018