GigaCloud Technology, Inc. (NASDAQ:GCT) announced on Friday that it will acquire New Classic Home Furnishing, Inc., a U.S.-based furniture distributor, as part of its strategy to strengthen its position in the North American furniture market.
Acquisition Terms and Strategic Rationale
The company said it has entered into a binding term sheet to acquire 100% of the outstanding equity interest of New Classic Home Furnishing for $18 million.
The acquisition is expected to merge GigaCloud's e-commerce and operational capabilities with New Classic's long-standing brick-and-mortar footprint, while broadening GigaCloud's supply chain footprint across Southeast Asia and the United States, where New Classic sources most of its products, with less than 3% coming from China.
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Based in Fontana, California, New Classic Home Furnishing is a profitable U.S. furniture distributor with more than 25 years in operation, catering primarily to brick-and-mortar retailers across North America.
The company brings in roughly $70 million in annual revenue, supported by a portfolio of over 2,000 active SKUs and relationships with more than 1,000 retail partners.
Executive Commentary
Larry Wu, Founder and CEO of GigaCloud, stated, "New Classic provides us with an extensive network of valued suppliers and brick-and-mortar retailers, along with deep expertise in the brick-and-mortar segment. This gives us the strategic foundation we need to begin serving these vital retailers with a new level of support and opportunity."
"This transaction is about bringing the best of both worlds to our retailer customers," said Jean Tong, Founder and CEO of New Classic.
Financial and Closing Details
The $18 million consideration is on a debt-free basis, subject to customary net working capital adjustments, and includes a post-close earn-out tied to recurring revenue milestones in 2026.
New Classic will retain its brand identity and management team, and the deal will be funded from GigaCloud's existing cash on hand.
The transaction is expected to close on Jan. 1, 2026, subject to customary closing conditions.
GigaCloud reported cash and cash equivalents, restricted cash, and investments of $303.7 million as of June 30, 2025
Price Action: GCT shares were trading higher by 6.17% to $29.51 at last check Friday.
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