Furniture brand Burrow acquired by Havenly Brands
Havenly Brands has acquired direct-to-consumer furniture brand Burrow, marking its fifth acquisition in two years.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Acquisition
Investors: N/A
Burrow, founded in 2017, is known for its modular, flat-pack sofas and chairs that assemble quickly without tools. Lee Mayer, CEO of Havenly Brands, stated that Burrow fills a unique gap in the market and complements Havenly's portfolio.
Most of the Burrow team will join Havenly. Burrow's leadership will stay on during a transition period to determine their future roles. Co-founder and CTO Kabeer Chopra will focus on integrating Burrow's e-commerce platform into Havenly's systems. Co-founder and CEO Stephen Kuhl will align the product roadmap and marketing efforts.
Havenly has rebranded from Havenly Inc. to Havenly Brands to reflect its diversified house of home decor brands. The company aims to build the largest digital-first home decor company. Along with Burrow, its portfolio includes The Citizenry, Interior Define, St. Frank, and The Inside.
Mayer remains optimistic about retail. Havenly plans to keep all four Burrow stores open in New York City, Chicago, Los Angeles, and Boston. She noted that for seating products, retail presence is necessary, and they may explore opening more locations for Burrow and other brands.
Havenly can provide acquired brands with resources they lacked before. Mayer said that in challenging times, independent brands may struggle to invest as needed. Joining Havenly's platform offers an established distribution mechanism to sell products.
The company is already testing cross-selling strategies. Earlier this year, The Citizenry opened an outpost within Interior Define's Denver store. Mayer is exploring how their brands can integrate through brick-and-mortar locations.
Despite challenges in the home category, Mayer believes Havenly is well-positioned. She said they've amassed best-in-class assets for the upcoming generation of home furnishing buyers and are ready to capitalise as normalcy returns to the market.
