TORONTO - Ready-to-assemble home furniture manufacturer Prepac Manufacturing has been acquired by TorQuest Partners, a Canadian private equity firm.
Founded in 1979, Prepac began as a shelving manufacturer, selling its products through traditional brick and mortar retailers and hardware stores. In the late 1990s, Prepac was an early mover into the online retail space and began drop-shipping its products directly from its manufacturing facility to the end-customer's doorstep. Today, the company sells furniture products exclusively through the big online retailers.
Prepac will continue to be run by current president, Jim Mathison, and the senior management team, all of whom are partner investors in the transaction. Steve Simpson, the company's founder, will also retain a significant investment in the business and will sit on the Board of Directors.
"I am extremely proud of the accomplishments of the Prepac team and believe it is the right time, and TorQuest is the right partner, to take the business forward," said Simpson. "I'm pleased to be leaving the business with a great foundation, ready for its next stage of growth."
Prepac is planning to build a manufacturing facility in Guilford County, North Carolina - pending approval of an economic incentive package by the county in an upcoming hearing. The proposed $597,286 incentive package would support the plant's construction. The plant would create an estimated 201 full-time jobs.
The Rhino Times reports that Prepac is considering four sites for the plant - two of which are in Guilford County. But according to the Times, every public hearing in the county is just a formality. The incentive package has likely already been approved.
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