GigaCloud Technology Inc. said it has completed the acquisition of New Classic Home Furnishings, a U.S.-based distributor serving the home furnishings market.

New Classic was founded more than 25 years ago and is based in Fontana, California. The distributor serves more than 1,000 retail customers and offers over 2,000 SKUs across home furnishings categories.

GigaCloud operates a global B2B ecommerce platform designed for bulky merchandise. Its marketplace integrates product discovery, payments and logistics, connecting manufacturers — primarily in Asia — with resellers in the United States, Asia and Europe. The company launched the platform in 2019 with a focus on furniture and has since expanded into categories such as home appliances and fitness equipment.

GigaCloud acquisition of New Classic Home Furnishings

GigaCloud valued the transaction at $18 million. It completed the transaction on a debt-free basis, including a post-closing earn-out, according to GigaCloud. The purchase price is subject to customary post-closing adjustments, including a net working capital adjustment. GigaCloud funded the acquisition with cash on hand, and the company’s board of directors unanimously approved the deal.

GigaCloud said the acquisition expands its large-parcel B2B ecommerce ecosystem by adding an established wholesale business with existing retailer relationships and a broad product assortment.

“Closing this acquisition represents another important step in executing our strategy to streamline large-parcel commerce,” said Larry Wu, founder, chairman and chief executive officer of GigaCloud.

He said the company plans to integrate New Classic’s retailer network into its marketplace and fulfillment platform.

The company said the acquisition closed after all customary conditions under the definitive share purchase agreement were satisfied.

Sign up

Sign up for a complimentary subscription to Digital Commerce 360 B2B News. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.