DETROIT – Art Van Furniture is being sold to a private equity firm in Boston, the company announced Wednesday.
The deal is reportedly worth $550 million and is expected to close in February. Thomas H. Lee Partners is the buyer. The company's management team will remain in place.
Art Van Elslander, chairman and founder of the Warren-based chain, announced the deal on Wednesday.
Art Van Furniture is one of the largest furniture retailers in the country with 100 stores in five states and 3,500 employees.
Existing company leadership led by CEO Kim Yost will work with THL to continue running the company. Gary Van Elslander will remain as president of Art Van Furniture, and David Van Elslander as president of Art Van PureSleep.
"After thoughtful consideration and strategic evaluation, we determined that Thomas H. Lee Partners is absolutely the right ownership partner for Art Van," said Yost. "We are collectively committed to building on Mr. Van's tremendous legacy as we enter this new chapter of the Art Van Furniture story."
"We are gratified and honored to be able to partner with Art Van Furniture as the Company moves into its next phase of growth," said Jeff Swenson, Managing Director at THL. "Over nearly six decades, the company has continuously realized Mr. Van's vision and set the standard for excellence in furniture retail in the Midwest. We look forward to working with the entire team at Art Van as we continue to aggressively grow this outstanding brand."
The sale is slated for a February closing. RBC Capital Markets, LLC acted as financial advisor to Art Van Furniture in connection with the transaction. Goldman, Sachs & CO acted as financial advisor to THL. As part of the agreement, sale terms will not be released.
Crain's Detroit is reporting the deal is for about $550 million.
"The heartbeat of any organization is its people," said Mr. Van Elslander. "I am proud of Art Van Furniture's history and what we have accomplished. The time for an ownership transition is right and the opportunity presented itself. There is still much I want to do, and I feel confident knowing the company and its people will be in the very best of hands for continued growth and success."
Founded in 1974, THL has an outstanding history of investing in growth-oriented businesses like Art Van Furniture, and they have a strong track record with consumer and retail brands—including companies such as 1-800 Contacts, Bargain Hunt Superstores, Dunkin' Brands, Fogo de Chao, and Party City.