DELRAY BEACH, Fla. – Residential furnishings manufacturer Twin Star Home has acquired TK Classics, a designer and manufacturer of outdoor furniture, including upholstered seating, dining tables, bars and accessories. Terms of the transaction, announced Jan. 27, were not disclosed.
Headquartered in West Sacramento, California, TK Classics has manufacturing capabilities in China and sells exclusively through retailers and direct-to-consumer e-commerce, including Wayfair.
A statement from Twin Star Home said the strategic acquisition of TK Classics significantly increases the company's market position and expands its product portfolio to outdoor living.
"As the line between indoor and outdoor living continues to blur, we are pleased to add another industry leader to our innovative product portfolio," said Lori Gonzalez, Twin Star Home CEO. "TK Classics has a strong track record of developing quality products that delight consumers and garner positive reviews. The seasoned management teams at Twin Star and TK Classics are well-positioned to operate at a larger scale, and we look forward to building upon the strength of our brands and market leadership in bringing comfort and warmth to consumers' homes. We have a powerful operating infrastructure that weaves through all functional areas and will support our continued growth and value creation."
"This acquisition provides the foundation to unlock TK's future growth potential, and will help take our already thriving business to the next level of performance," said Jennifer Hayes, founder and CEO of TK Classics. "I am pleased to find an acquisition partner who shares TK's core principles of providing competitively priced, beautiful, innovative home furnishing products that bring family and friends together and enhances their personal lifestyle experience."
TK Classics will maintain operations in West Sacramento, California. The combined company will be headquartered in Delray Beach, Florida.
Twin Star Home is a portfolio company of Z Capital. "We have been looking for the right acquisition for many years and TK Classics is a valuable addition to Twin Star's impressive portfolio and we are thrilled to welcome their team to the Z Capital portfolio," said James Zenni, Z Capital founder, president and CEO. "This acquisition creates a leading North American home furnishings platform that is diversified across categories, customers, geographies and channels, and is ideally situated to execute on attractive growth opportunities in the highly fragmented home furnishings market."
"This transaction underscores Twin Star's commitment to anticipating and meeting consumers' evolving design preferences and shopping habits," added Rahul Sawhney, senior managing director of Z Capital. "Twin Star has built an incredibly strong platform that is able to adapt to today's consumer through an expanded product portfolio and significant investment in e-commerce capabilities, product innovation and customer insights. TK Classics adds highly attractive complementary product lines, each capturing elements of design, technology and multi-functionality that our customers have come to expect from Twin Star. We are looking forward to working together to achieve our shared growth objectives."
Headquartered in Delray Beach, Twin Star Home is an award-winning designer and manufacturer of home furnishings for indoor and outdoor living and is a North American market leader in electric fireplaces. Indoor products include living room, home office and bath furniture, many with integrated media solutions. Outdoor living products include upholstered modular seating collections, dining tables, bars, fire pits and accessories. The company's national brands include: ClassicFlame, Duraflame, Bell'O, Tresanti, ChimneyFree and now TK Classics.
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