Eureka Growth Capital and management have announced the recapitalizion of Creative Co-Op and affiliated companies. Headquartered in Memphis, TN, Creative is a design, marketing and sourcing resource for home accent, décor and gift products.
Eureka Growth Capital (“Eureka”) today announced its recapitalization, in partnership with management, of Creative Co-Op, Inc. and affiliated companies (together, “Creative”), a leading design, marketing and sourcing resource for home accent, décor and gift products. Creative represents Eureka’s first platform investment from its latest investment vehicle, Eureka III, L.P.
Headquartered in Memphis, TN, Creative is a preferred supplier to approximately 11,000 independent retailers and a diversified base of national specialty retailers. Creative provides its clients with design differentiation, merchandising expertise and over 200 manufacturing relationships through its owned sourcing and logistics operation, York Asia. Through its Shenzen, China-headquartered entity Creative Home, Creative sells products to wholesale customers in over 30 countries in Europe, Australia, Asia and Africa, and manages a retail operation in China that includes storefronts in over 15 cities.
“Creative provides a tremendous resource to its customers, both large and small,” said Jonathan Zimbalist, a Partner with Eureka who will join Creative’s Board of Directors. “Creative’s ability to provide a one-stop solution for unique product design, sourcing, merchandising, and exceptional delivery at price points that represent a compelling margin opportunity for its customers has differentiated Creative in the marketplace and contributed to the company’s impressive growth over the last several years. We look forward to working closely with the talented Creative management team to continue that growth.” Jonathan Chou, a Principal with Eureka who will also join Creative’s Board of Directors added, “We were very impressed with the ability of the management team of Creative to develop and deliver such a broad product offering so consistently to markets not just in the U.S. but around the world. They understand the needs of their customers and have built a logistics infrastructure that makes them integral to the success of their customers.”
“In searching for the right financial and strategic partner, Eureka was the clear outlier,” said Lee Wang, Executive Vice President of Creative. “Their level of intelligence and integrity is second to none, and they went to great lengths to understand our business, both internationally and in the U.S., and to identify opportunities to accelerate our growth. We are extremely excited to partner with them as we look to achieve continued growth and solidify ourselves as the clear leader in our space.”
Regions Bank provided debt facilities to support the recapitalization.
About Eureka Growth Capital
Eureka Growth Capital is a private equity firm targeting niche market leaders with up to $75 million in revenue. Eureka focuses on partnering with proven managers to drive the growth of promising companies into outstanding enterprises. Eureka leads buyouts that bring significant ownership to the operators driving the success of the business and minority recapitalizations with flexible investment structures designed to uniquely meet the needs of the company, its management team and other shareholders.