Novacap acquires Bush
MONTRÉAL – Novacap has acquired Bush Industries, an American manufacturer of ready-to-assemble case goods through Bestar, one of the three furniture manufacturers already in the Canadian private equity firm’s existing portfolio.
Based in Lac Mégantic, Quebec, Bestar is also a designer and manufacturer of RTA furniture for both home and office.
In announcing the acquisition, Novacap said the two companies have over 130 years of combined history in the RTA furniture sector with combined sales of approximately $260 million.
The company also noted Bush and Bestar share some customers across the North American market and will leverage each other’s strengths to accelerate their current growth. Together, they will provide a large and growing product offering across several categories – including bedroom, home office, entertainment centres and occasional tables. They also boast quick ship and delivery capabilities as well as an expanding team of e-commerce marketing and sales specialists.
The combined companies will have a strong and deep leadership team and a stable long tenured workforce of over 600 employees, including more than 200 in Canada.
“Bestar’s goal is to concentrate their efforts on e-commerce solution for home/office furniture,” Frederick Perrault, a senior partner at Novacap and chairman of Bestar said in a statement.
“Bestar’s and Bush’s leadership teams see a significant and fast-growing market opportunity for furniture sold online and shipped directly to the end consumer. This emerging business model provides furniture consumers a convenient, rapid and affordable shopping solution,” he added.
“While we will see some savings from efficiencies once the companies are integrated, our main objective for the combination will be to further expand our product assortment, leverage our nationwide quick shipping capabilities and our global manufacturing and sourcing footprint to further accelerate the rapid growth we are both experiencing,” said Michael Evans, president and chief executive officer of Bush Industries, who will serve in the same role for the combined entity.
The combined company will be headquartered in Sherbrooke, Quebec. Bush has manufacturing plants in Jamestown, New York and maintains support facilities in Pennsylvania, California and China.
“Our customers will see little to no change in direction as we move forward,” Evans continued, adding, “We will continue on our rapid pace of new product and category introductions. We will continue to hone and speed up our distribution services and we will add supplementary warehouse locations during 2020 in order to answer our client’s needs.”
The terms of the acquisition were not disclosed, however, Novacap also announced two other Quebec-based investment organisations were supporting the acquisition including Desjardins Capital and Fonds de solidarité FTQ.
“Bestar is an industry leader producing quality Québec-made furniture using state-of-the-art robotic processes,” stated Luc Ménard, Desjardins chief operating officer. “We are proud to support this flagship in its acquisition of its U.S. competitor, Bush Industries. In doing so, Desjardins Capital is helping to maintain a head office and quality jobs in the province of Québec, in keeping with its mission.”
“Bestar has demonstrated that a strong digital strategy is essential to ensure the growth of manufacturing companies. Supporting companies like Bestar in the consumer goods’ industry is at the heart of the Fonds’s mission,” said Janie Béïque, executive vice president of Fonds de solidarité FTQ.
Founded in 1981, Novacap is a Canadian private equity firm with $3.6 billion of assets under management. In addition to Bestar, its stable of companies in the furniture industry includes mattress manufacturer Kingsdown and Foliot Furniture, a Quebec-based producer of hospitality furniture.
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