Canadian mid-market private equity firm TorQuest Partners has acquired Prepac Manufacturing Ltd, a Delta, British Columbia-based designer and maker of affordable, ready-to-assemble home furniture.
No financial terms were disclosed.
Founded in 1979 by Steve Simpson, Prepac sells its products exclusively through major online furniture retailers in North America.
The company will continue to be run by senior management led by President Jim Mathison, all of whom partnered in the deal. Simpson will retain a significant interest and sit on the board.
Prepac is the eighth platform investment of TorQuest Partners Fund IV, which raised $925 million in 2016.
In December, TorQuest partnered in the rebranding and expansion of Calgary-based charter airline Enerjet.
TorQuest Partners Announces Acquisition of Prepac
TORONTO, March 14, 2019 /CNW/ – TorQuest Partners (“TorQuest”) today announced the acquisition of Prepac Manufacturing Ltd. (“Prepac”), a manufacturer of ready-to-assemble (“RTA”) home furniture sold exclusively through online retailers.
Prepac was founded in 1979 by Steve Simpson, and is based in Delta, British Columbia. The Company originated as a shelving manufacturer, selling its products through traditional brick and mortar retailers and hardware stores. In the late 1990s, Prepac was an early mover into the online retail space and began drop-shipping its products directly from its manufacturing facility to the end-customer’s doorstep. Since then, the Company has significantly expanded its operations and today sells its bedroom, multimedia, home office, entryway and storage products exclusively through the largest online furniture retailers in North America including Amazon, Wayfair and Walmart.
Prepac will continue to be run by the Company’s President, Jim Mathison, and the senior management team, all of whom are partner investors in the transaction. Steve Simpson, the Company’s founder, will also retain a significant investment in the business and will sit on the Board of Directors.
Rachel Skelton, a Principal at TorQuest Partners, said, “Steve Simpson and the management team have steered the business on an impressive growth trajectory over many years. The expertise within the business and operational excellence give us great confidence that the business will continue to thrive.”
Steve Simpson, Founder of Prepac said, “I am extremely proud of the accomplishments of the Prepac team and believe it is the right time, and TorQuest is the right partner, to take the business forward. I’m pleased to be leaving the business with a great foundation, ready for its next stage of growth.”
Jim Mathison, President of Prepac said, “Our focus on our retail customers and end consumers will remain core to our business strategy as we continue to grow our market share in North America. We see incredible opportunity for our business and our customers, in this thriving marketplace.”
Daniel Sonshine, Partner at TorQuest, said, “This is the eighth platform investment for TorQuest Partners Fund IV and continues our well-established strategy of building relationships with successful Canadian entrepreneurs to help transition their businesses over time, and support their management teams in the next phase of growth.”
About Prepac Manufacturing Ltd.
Established in 1979, Prepac is a Canadian-based designer and manufacturer of affordable, high-quality RTA furniture. Prepac runs a state-of-the-art manufacturing facility in Delta, British Columbia with impressive order-to-ship times of 6-48 hours, on thousands of orders, daily. Prepac products are sold through online retailers across North America. For more information, please visit www.prepacmfg.com.
About TorQuest Partners
Founded in 2002, TorQuest Partners is a Canadian-based manager of private equity funds. With more than C$2 billion of equity capital under management, TorQuest is currently investing from TorQuest Partners Fund IV, a $925 million fund that closed in June 2016. TorQuest invests in middle market companies, and works in close partnership with management to build value. To learn more about TorQuest Partners, please visit www.torquest.com.
For further information: For TorQuest Partners media inquiries: Heather Tory, 416-649-8010, firstname.lastname@example.org