Private equity firm acquires Arhaus stake
Clint Engel -- Furniture Today, January 13, 2014
WALTON HILLS, Ohio — Private equity firm Freeman Spogli & Co. has acquired a minority stake in Top 100 company Arhaus here.
Terms of the deal were not disclosed.
Arhaus was founded in 1986 by CEO John Reed and his father, Jack Reed, and operates 46 stores in 18 states along with a growing e-commerce business. The company is No. 33 on Furniture/Today's latest Top 100 with 2012 estimated furniture, bedding and accessories sales of $215 million at then 43 stores.
Sales for the upper-middle to high-end retailer were up 30.3% from the year before.
Freeman Spogli, with offices in Los Angeles and New York, invests and partners with management in consumer-related and distribution companies in the United States, according to a release by the firm. Since 1983, it has invested $3.1 billion in 49 companies with aggregate transaction values of more than $19 billion, the firm said.
"We are excited to partner with Freeman Spogli as we expand into new markets and grow our e-commerce presence," John Reed said in the release. "Freeman Spogli's expertise in the retail industry will be an important resource to us as we grow our business."
Brad Brutocao, a general partner of Freeman Spogli, said Reed and the Arhaus team "have created a unique shopping experience in the home furnishings category," and that Arhaus customers "value its distinctive merchandise, visually inspiring stores, and engaging customer service."
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