The Container Store’s acquisition of Closet Works allows the company to expand its manufacturing capabilities to include wood-based spaces and enhance its premium wood-based product offering.
COPPELL, Texas – The Container Store has acquired Chicago-based home storage solutions and closet organization company, Closet Works, for $21.5 million.
The acquisition will expand The Container Store’s manufacturing capabilities to include wood-based spaces and enhance its premium wood-based product offering. The company already manufactures its component-based systems through its wholly-owned subsidiary, Elfa.
“As part of our effort to double our sales over time, I am thrilled to announce our strategic acquisition of Closet Works,” said Satish Malhotra, Container Store president and CEO. “This acquisition allows us to meet the growing consumer demand for premium wood-based spaces and expand our capabilities, in an effort to gain a larger share of the estimated six-billion-dollar custom closet market – particularly in spaces above $2,000 – with expanded profit margins.”
The acquisition provides access to equipment and facilities located centrally in the United States and will allow the company to control the process from product manufacturing to installation. This will also offer opportunities for increased quality control and expanded profit margins, according to Malhotra.
Additionally, The Container Store expects to offer more design customization options to customers and premium wood-based spaces including closets, garages, home offices, pantries, laundry rooms, and Murphy beds.
Closet Works president and previous co-owner, Tom Happ, has joined The Container Store as president of Closet Works and will assist with the integration.