Wipfli Corporate Finance Advisors, LLC is pleased to announce its client, Closet Works (“CW”) has been acquired by The Container Store (“TCS”), the leading specialty retailer of storage and organization solutions and custom closets, based in Coppell, Texas.
TCS’s $21.5 million acquisition of the Chicago-based home storage solutions and closet organization company will expand TCS’s manufacturing capabilities to include wood-based spaces and enhance its premium wood-based product offering.
CW, a Chicago-based home storage solutions and closet organization company, was acquired by TCS for $21.5 million. CW will expand TCS’s manufacturing capabilities to include wood-based spaces and enhance its premium wood-based product offering.
With CW, TCS expects to be able to offer more design customization options to customers seeking premium wood-based spaces, including closets, garages, home offices, pantries, laundry rooms and Murphy beds.
“As part of our effort to double our sales over time, I am thrilled to announce our strategic acquisition of Closet Works,” said TCS President and CEO, Satish Malhotra. “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 $6 billion custom closet market — particularly in spaces valued above $2,000. We look forward to working with the talented team at Closet Works to strengthen our leadership position in this category.”
CW will provide TCS with access to quality equipment and facilities at a central U.S. location and will allow TCS to control the process from product manufacturing to installation.
CW President Tom Happ has joined TCS as president of Closet Works and will assist with the integration. The transaction closed on December 30, 2021.
Wipfli Corporate Finance Advisors, LLC acted as exclusive financial advisor to CW in connection with the sale.
About Closet Works
Founded in 1987, Chicago-based Closet Works is a designer, manufacturer, and supplier of wood-based custom home storage and organization solutions. Customizations include more than 40 finish options, lighting, hardware, countertops, trim, and their Rotating 360 Organizer. Their focus is premium custom-made closets and personal spaces.
About The Container Store
The Container Store Group, Inc. (NYSE: TCS) is the nation’s leading specialty retailer of storage and organization products, custom closets, and in-home services – a concept they originated in 1978. Today, with locations nationwide, the retailer offers more than 11,000 products to support organized living and workspaces. Learn more about The Container Store and its products and services.