Private equity firm Palamon Capital Partners is acquiring a majority stake in the Rug Co. from its original founders and minority shareholder Piper Private Equity.
The Rug Co., founded in 2007, handcrafts more than 300 styles of rugs and owns 10 showrooms worldwide, generating about $35 million in annual sales. The target collaborates with designers including Alexander McQueen and Paul Smith. Founders Christopher and Suzanne Sharp are keeping a stake in the company. Piper has invested in the target in 2007.
“With consumers increasingly seeking hand-crafted quality products with heritage we see fantastic potential in scaling the business from the strong base established by Christopher and Suzanne, into a truly global company,” says Palamon partner Pascal North.
Houlihan Lokey Inc. (NYSE: HL) and Slaughters & May are advising Palamon. Livingstone Partners and Pinsent Masons are advising the Rug Co.