On January 14, Novacap, one of Canada’s leading private equity firms, announced that Bestar, one of its portfolio companies designing and manufacturing ready-to-assemble (RTA) furniture, has acquired Bush Industries, a leading American manufacturer of case goods and RTA furniture for the office and home.

The two companies have over 130 years of combined history in the RTA furniture industry and consolidated sales of more than approximately CAN$260 million.

The companies share some customers across the North American market and will leverage each other’s strengths to continue and accelerate their current growth. Together, the companies will provide a large and growing product offering across several categories, the industry’s leading quick shipment and delivery capabilities, and an expansive 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 is an industry leader producing quality Québec-made furniture using state-of-the-art robotic processes,” stated Luc Ménard, COO of Desjardins Capital. “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.” added for her part Janie Béïque, executive vice-president for investments at Fonds de solidarité FTQ.

The headquarters of the Bestar-Bush company will be located in Sherbrooke, Québec, Canada.

Desjardins Capital and Fonds de solidarité FTQ support the transaction by becoming shareholders of the new group Bestar-Bush.

Source: NOVACAP