US furniture manufacturer Bassett Furniture Industries, Inc. has announced the acquisition of Noa Home Inc., a mid-priced e-commerce furniture retailer headquartered in Montreal, Canada.
Noa has operations in Canada, Australia, Singapore and the UK and had net revenues of approximately C$19.1m for its most recent fiscal year.
The purchase price included cash payments of C$2m paid to the co-founders of Noa and approximately C$5.7m for the repayment of existing debt.
The Noa co-founders will also have the opportunity to receive additional annual cash payments of C$1.33m per year for the following three fiscal years based on established increases in net revenues and achieving certain internal EBITDA goals.
Rob Spilman, Bassett Chairman and CEO, commented: “We are excited to add the digital commerce ability and the entrepreneurial spirit of the Noa Home management team to the Bassett portfolio.
“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$19.1m 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 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.
Jeremy added: “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.”