Sycamore grows portfolio with décor designer NBG Home

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Private equity firm Sycamore Partners has completed its acquisition of NBG Home, a wall goods and décor designer, from Kohlberg & Co. LLC. Financial terms of the deal were not disclosed.

NBG Home designs and manufactures “affordable” décor products from ready-made accent furniture and wall goods to custom framing and lighting. The Austin, Texas-based target distributes its products using a variety of brands, including: Jimco, Patton Wall Décor, Thro, J Hunt, Design Solutions International Inc., Plantation Patterns and Nielsen, Burnes of Boston, Pinnacle, Bainbridge and Dax. NBG Home services a variety of retail clients from mass merchants and discount stores to home centers and warehouse clubs.

Sycamore is a New York private equity firm with more than $3.5 billion in capital under management. The company has also invested in online retailer Hot Topic, Talbots Inc., Nine West Holdings, Belk, and The Limited. The firm plans to explore growth opportunities for NBG Home through organic and strategic acquisitions.

Headquartered in New York, Kohlberg is a middle-market private equity firm with more than $5 billion in committed capital. Since its inception in 1987, the firm has completed 69 platform investments and more than 150 add-on acquisitions in companies across industries such as industrials, healthcare services, business and financial services, and consumer products. In October 2016, Kohlberg acquired a majority stake in MarketCast LLC, a data analytics provider for the entertainment industry.

Manufacturers of home goods are benefiting from trends in the real estate market, leveraging the increase in purchases of new residences. Related deals include: Z Capital Partners LLC’s backing of fireplace maker Twin-Star International Inc.; Hooker Furniture Corp.’s (Nasdaq: HOFT) agreement to buy Home Meridian International Inc.; Brentwood Associates purchase of Z Gallerie; and Mattress Firm Holding Corp.’s (Nasdaq: MFRM) completing its deal for rival Sleepy’s.

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