Comvest Partners has made an undisclosed investment in RugsUSA, an e-commerce retailer and provider of area rugs and other home decor products. Koorosh Yaraghi, founder of RugsUSA, will remain as CEO and owner of the RugsUSA. Lazard Middle Market provided financial advice to RugsUSA while Financo did likewise for Comvest.
WEST PALM BEACH, FL., May 7, 2018 – Comvest Partners (“Comvest”) is pleased to announce an investment in RugsUSA (or “the Company”), a leading e-commerce retailer and supplier of area rugs and other home décor products. Koorosh Yaraghi, founder of RugsUSA, will continue in his role as CEO and as an owner of the Company. Digital Fuel Capital (“Digital Fuel”), an experienced e-commerce private equity firm led by Carson Biederman, and Bruce Crain, an experienced consumer products executive, will work with Comvest as operating partners and investors in RugsUSA.
RugsUSA has leading design and global sourcing capabilities, allowing the Company to provide an expansive selection of area rugs and other home décor products directly to consumers via www.rugsusa.com, as well as through leading e-commerce marketplaces and retailers.
“Today’s consumer demands a broad selection of styles, high quality product, and a compelling value, all available instantly via an e-commerce shopping experience. RugsUSA is uniquely positioned to address these needs,” said Tom Clark, Partner at Comvest Partners. “Koorosh has built a truly impressive business, and we are very excited to partner with him and the RugsUSA management team.”
“This is an exciting inflection point for RugsUSA. I’m proud of the growth our team has achieved and believe Comvest is the ideal partner to support our future growth initiatives,” said Koorosh Yaraghi.
“Comvest has a successful track record of partnering with founder-owned businesses as well as significant experience with both direct-to-consumer and business-to-business sales models, particularly via e-commerce. This experience will enable us to provide support and resources to help the Company continue its growth,” said Kevin LaHatte, Principal at Comvest Partners.
Lazard Middle Market served as financial advisor and Blank Rome served as legal advisor to RugsUSA. Financo served as financial advisor and McDermott Will & Emery served as legal advisor to Comvest.
About Rugs USA
A pioneering e-commerce and leader in the area rug industry since 1998, RugsUSA is dedicated to bringing consumers high-quality area rugs and other home decor products from around the world at attractive price points. The Company’s expansive selection, low-price commitment, leading fulfillment, and easy-to-navigate website create a seamless buying experience for the customer. For more information, please visit www.rugsusa.com.
About Comvest Partners
Comvest Partners is a private investment firm providing equity and debt capital to middle-market companies across North America. Since its founding in 2000, Comvest has invested over $3.3 billion in over 165 companies. Today, Comvest’s funds have over $3.1 billion of assets under management. Through our extensive capital resources and broad network of industry relationships, we offer our companies financial sponsorship, critical strategic and operational support, and business development assistance. For more information, please visit www.comvest.com.