Ashley Home, an affiliate of Ashley Global Retail, LLC announced it is acquiring digital retailer Resident Home Inc. The Walnut, California-based Resident Home, perhaps best known for its Nectar brand, also owns Dreamcloud, Siena, Awara and Cloverlane. According to a release, the board of directors of both companies unanimously approved the acquisition. Post-closing, Eric Hutchinson and Ran Reske (co-founders and co-CEOs of Resident) will remain on board.
“We are incredibly excited about the possibilities that Resident brings to Ashley,” said Todd Wanek, CEO of Arcadia, Wisconsin-based Ashley Furniture Industries, Inc. “In only a few years, Resident has established itself as a premier destination for mattresses, and we believe this merger will strengthen both companies and accelerate our growth trajectories, together bringing more products to more homes.” The same release highlights Resident’s strengths in data science and analytics — and its presence in more than 2,500 retailers across the United States — three factors expected to bolster Ashley’s merchandising assortment and its direct-to-consumer and wholesale businesses.
A report by New York City-based investment bank and financial services company Piper Sandler stated that the acquisition was “an intriguing transaction that could have longer-term ripple effects across the industry,” particularly due to Resident’s strong performance marketing business and Ashley’s sourcing and manufacturing capabilities. The transaction is expected to close on March 6.
