US-based storage retailer The Container Store has acquired Closet Works, a home storage supplier and closet organisation company, for $21.5m.
Based in Chicago, Closet Works specialises in designing, manufacturing and supplying wood-based custom home storage and organisation solutions.
The company’s products are designed for walk-in cupboards, home offices, wine storage units, wall beds and garages among other home spaces.
Closet Works operates a 60,000ft² multipurpose facility in Elmhurst, Illinois, which incorporates its office, manufacturing and warehouse locations.
The company also has a 2,800ft² design showroom on the north side of Chicago.
The addition of Closet Works is intended to expand The Container Store’s portfolio of premium wood-based products and allow the company to offer more design customisation selections to its customers.
The deal closed on 30 December 2021.
The Container Store president and CEO Satish Malhotra said: “As part of our effort to double our sales over time, I am thrilled to announce our strategic acquisition of Closet Works.
“This acquisition allows us to meet the growing consumer demand for premium wood-based spaces and expand our capabilities, in an effort to gain a larger share of the estimated $6bn custom closet market – particularly in spaces above $2,000 – with expanded profit margins.
“We look forward to working with the talented team at Closet Works to strengthen our leadership position in this category.”
As part of the transaction, Closet Works president and previous co-owner Tom Happ has joined The Container Store.
He will continue to serve as president of Closet Works and help with the integration process.
The Container Store offers storage and organisation products, custom cupboards and in-home services.
Founded in 1978, the company currently provides more than 11,000 products and has store locations across the US.