Gigacloud Technology Inc (NASDAQ: GCT) has announced its planned acquisition of New Classic Home Furnishings, Inc. for $18 million. New Classic, a U.S.-based furniture distributor, generates approximately $70 million in annual revenues and services over 1,000 retailer customers with a diverse portfolio of over 2,000 active SKUs.
The acquisition is a strategic move for Gigacloud, aimed at expanding its B2B ecosystem into the brick-and-mortar wholesale space. It is expected to provide Gigacloud with an extensive network of valued suppliers and brick-and-mortar retailers, as well as deep expertise in the brick-and-mortar segment.
New Classic sources predominantly from Southeast Asia and the United States, with less than 3% of its sourcing from China. The acquisition is set to diversify Gigacloud's supply chain and provide the company with the foundation to begin serving brick-and-mortar retailers with a new level of support and opportunity.
The transaction, set to close on January 1, 2026, is subject to customary closing conditions. Gigacloud plans to fund the acquisition from its existing cash on hand. Upon completion, New Classic will maintain its brand identity and management team.
This move signifies Gigacloud's commitment to building a truly channel-agnostic B2B marketplace and providing a more complete and flexible suite of solutions and products to its retailer customers. The acquisition aligns with Gigacloud's long-term vision and marks a significant step in the company's growth strategy.
Gigacloud Technology Inc is known for its global end-to-end B2B technology solutions for large parcel merchandise. The company's B2B ecommerce platform, referred to as the "Gigacloud Marketplace," connects manufacturers primarily in Asia with resellers in the U.S., Asia, and Europe, facilitating cross-border transactions with confidence, speed, and efficiency. Today the company's shares have moved 2.89% to a price of $27.79. Check out the company's full 8-K submission here.
