Bassett acquires Noa Home
BASSETT, Virginia – Bassett Furniture Industries, a publicly held manufacturer and retailer of both upholstery and case goods based here, announced last week its has acquired the capital stock of Canadian digital furniture retailer Noa Home.
Based in Montreal, Noa Home specializes in a mid-range upholstery, upholstered beds, mattresses, rugs and accessories and has operations in Canada, Australia, Singapore and the United Kingdom. Most of its product is manufactured in the Pacific Rim and Europe.
In a statement, Bassett Furniture said Noa Home had net revenues of approximately C$19.1 million for its most recent fiscal year, although its profitability is unknown. The purchase price included cash payments of C$2.0 million paid to Noa’s co-founders and approximately C$5.7 million for the repayment of existing debt.
Noa Home’s co-founders also could receive additional annual cash payments of C$1.33 million per year for the following three fiscal years if certain established increases in net revenues and internal EBITDA (earnings before interest, taxes, depreciation and amortization) goals are achieved.
“We are excited to add the digital commerce ability and the entrepreneurial spirit of the Noa Home management team to the Bassett portfolio,” Bassett chairman and chief executive officer Rob Spilman said. “In less than six years, with a very lean staffing model, the Noa team has built an operational blueprint that can grow significantly beyond the C$19.1 million of revenue that they generated in their fiscal year ended February 28, 2022. The acquisition will provide Bassett with a greater online presence and will allow us to attract more digitally native consumers.”
Noa was founded in 2016 in Montreal by Jeremy Kopek and Jean-Claude Renaud. Kopek served as vice president at Canadian contemporary furniture retailer Structube from 2005 to 2015, while Renaud founded Quebec based e-commerce site Vie Urbaine in 2010, which was later acquired in 2017.
“Becoming part of Bassett is a great pathway to pursue our original vision of growing Noa into a significant player in the e-commerce furniture world. Access to greater resources will immediately allow us to improve our in-stock position and to expand our Canadian distribution beyond our original eastern Canada footprint,” Kopek said.
At the end of its 2021 fiscal year, Bassett Furniture had annual sales of US$430.9 million with earnings of US$18.0 million or US$1.83 per share. It also operated 92 company- and licensee-owned stores in the United States and Puerto Rico. It also sells to more than 700 other retailers in the U.S. and internationally.