Art Van Furniture is being sold to the private equity firm Thomas H. Lee Partners, the company announced today.
"The timing was right, the opportunity was there," said Kim Yost, chief executive officer of the Warren based company.
The chairman and founder of Art Van Furniture, Art Van Elslander, said in a news release that the time for ownership transition is right.
"There is still much I want to do, and I feel confident knowing the company and its people will be in the very best of hands for continued growth and success," he stated in part.
Van Elslander started with a single store on Gratiot in East Detroit in 1959. The company currently has over 100 stores and more than 3,500 employees n five states with plans to grow further.
"There's a forecast in the future that we will double our store count within the next 36 months," Yost said Tuesday. The company is planning additional focus on ecommerce sales while also continuing to expand to other markets.
Indianapolis, Columbus, Cincinnati, Pittsburgh and Cleveland are all on the radar, according to Yost. "Within a 300 mile radius of our 1.3 million square foot distribution center is 15 billion dollars worth of furniture and mattress sales," said Yost. "Gary and myself and the entire leadership team are anxious to get after it."
Gary Van Elslander is one of the founder's sons. He currently serves as company president. His brother, David, is president of the company's Pure Sleep division.
Thomas H. Lee has a history of investing in growth-oriented businesses and in consumer and retail brands such as 1-800 Contacts, Bargain Hunt Superstores, Dunkin' Brands, Fogo de Chao and Party City. It's based in Boston.
Terms of the deal have not been released. The sale is expected to close in mid February, according to Yost.
