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Retail

Ashley and Resident Announce Acquisition

Expected to create a broader assortment of home furnishings to accelerate resident's growth.

3/7/2024
TAMPA, Fla. -- Ashley Home, Inc. and Resident Home Inc. today announced the signing of an agreement, under which Ashley Home, Inc., an affiliate of Ashley Global Retail, LLC (collectively, "Ashley"), will acquire Resident Home Inc. ("Resident"). The transaction, which was unanimously approved by the Board of Directors of both companies, provides Resident, a leading digital retailer and wholesaler of mattresses and bedding accessories, with an opportunity to expand its home furnishings assortment and global footprint. Through Ashley's affiliate company, Ashley Furniture Industries, LLC ("AFI"), Resident will experience improved sourcing and efficiencies to foster additional growth in both its direct-to-consumer and wholesale businesses.

Through its award-winning Nectar®, DreamCloud®, Awara™, and Siena™ brands, Resident has established itself as a leading online seller of mattresses and bedding accessories. Resident's success is underpinned by its deep expertise in data science and analytics, performance marketing, and e-commerce technology. In addition to Resident's digital presence, Resident's mattresses are sold at over 2,500 retailers nationwide as well as in Canada and the U.K. As part of the transaction, Co-Founders and Co-CEO's of Resident, Eric Hutchinson and Ran Reske, will remain in their positions post-closing.

"Ran and I are thrilled that Resident will now be part of the Ashley family. This partnership marks a significant milestone for our team and our journey. We believe that together, we can achieve even greater heights and deliver unparalleled value to our customers. Joining forces with Ashley enables new opportunities for growth and our team is excited about the possibilities ahead," said Hutchinson.

"We are incredibly excited about the possibilities that Resident brings to Ashley. 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," said Todd Wanek, CEO of Ashley.

The parties anticipate closing on this transaction March 6, 2024.

In connection with the transaction, BofA Securities served as financial advisor and Holland & Knight LLP acted as legal counsel to Ashley, while Sidley Austin LLP acted as legal counsel for Resident. Avid Capital Advisors LLC also advised Resident on the transaction.
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