B2B marketplace GigaCloud Technology Inc. plans to acquire New Classic Home Furnishings Inc. for $18 million.
The acquisition of New Classic would expand GigaCloud’s business-to-business platform into the brick-and-mortar wholesale furniture market. The all-cash deal covers all outstanding equity in New Classic and includes an earn-out based on 2026 revenue milestones. The companies expect the transaction to close in January, pending customary conditions.
GigaCloud acquisition of New Classic
New Classic is a 25-year-old company based in Fontana, California. It distributes furniture to more than 1,000 retailers across North America and generates $70 million in annual revenue. New Classic offers over 2,000 active products and sources primarily from Southeast Asia and the United States, with less than 3% from China.
“This acquisition is a pivotal step in our long-term vision for building a truly channel-agnostic B2B marketplace,” said Larry Wu, founder and chief executive officer of GigaCloud. “New Classic gives us a strong retail network and expertise that will help us serve brick-and-mortar partners with new levels of support and efficiency.”
Jean Tong, founder and CEO of New Classic, said the integration will combine traditional distribution strengths with GigaCloud’s digital reach.
“By uniting our established retailer relationships with GigaCloud’s technology and fulfillment capabilities, we can deliver more value and flexibility to our customers,” Tong said.
New Classic will retain its brand and management team after the deal closes. GigaCloud said the acquisition broadens its supply chain diversity and advances its goal of linking digital and physical wholesale channels through its global B2B marketplace for large-parcel goods such as furniture and appliances.
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