The Shade Store to be Acquired by Leonard Green & Partners
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PORT CHESTER, NY, August 9, 2018 – The Shade Store, a provider of premium custom window treatments, today announced the signing of a definitive agreement to be acquired by Leonard Green & Partners. The Shade Store is being purchased from Great Hill Partners, which acquired a majority stake in the company in 2013, partnering with the company’s co-founders Adam Gibbs, Ian Gibbs, Greg Spatz and Zach Gibbs. Financial terms of the transaction were not disclosed.
Founded in 2006, The Shade Store provides a curated custom window treatment service tailored to address the needs of consumers and trade professionals, including direct access to high quality products, exclusive materials, skilled design consultants, and measurement and installation services. With more than 60 showrooms nationwide and exclusive partnerships with leading home décor brands and designers such as RH, Kravet, Sunbrella, Nate Berkus, and Jonathan Adler among others, The Shade Store offers a unique customer value proposition built on exceptional service, quality, and value.
“We set out to change the way people shop for the finest custom shades, blinds, and drapery by simplifying and bringing style to a complicated and time-consuming process without sacrificing quality,” said Adam Gibbs, co-founder and CEO of The Shade Store, who will continue to lead the business with the existing management team. “We are expanding our vision nationally, and see tremendous opportunities to continue our growth by entering additional sales channels, launching brand extensions and expanding our strategy into adjacent categories. And, of course, we will remain focused on delivering quality, value and service to our customers.”
“Adam and the entire team at The Shade Store have built an impressive business with considerable runway to continue growing by delivering unsurpassed value to custom window treatment customers,” said Kris Galashan, Partner at Leonard Green & Partners. “We are thrilled to invest and partner with the management team as they continue building this outstanding franchise.”
Peter Garran, Partner at Great Hill Partners, commented: “We have enjoyed an outstanding partnership with Adam, the other co-founders and the entire Shade Store management team, supporting the company’s evolution into the leading retailer of custom window treatments nationwide. The business has added 50 additional showrooms since our investment, and continued its unmatched omni-channel approach with a tireless focus on service that had previously been lacking in the window treatment market.” Michael Kumin, Managing Partner at Great Hill Partners, added: “We would like to thank Adam and the team for their outstanding execution and dedication to building and growing The Shade Store into the leader it is today. We believe The Shade Store is well-positioned to continue to offer unparalleled products, services and customer experience that will extend its history of success into this next phase of its story.”
The transaction is subject to customary closing conditions, including requisite regulatory approvals, and is expected to close during the third quarter of 2018.
Barclays is serving as financial advisor to the sellers. Sidley Austin LLP and PricewaterhouseCoopers LLP are providing the sellers with legal and accounting advisory services, respectively. Latham & Watkins LLP is serving as legal counsel to Leonard Green & Partners, L.P.
About The Shade Store
The Shade Store is a family-run, premium custom window treatment company with a rich heritage in luxury textiles and interior design. Its exclusive collection of more than 1,400 in-stock fabrics and materials provides customers with an unparalleled level of style and customization options. Every window treatment is proudly handcrafted in the USA by a skilled artisan, hung and tested for quality assurance and ships free in 10 days or less. The Shade Store offers a complete range of design services for consumers and design-trade clientele, including free swatches, free professional window measurements, photo rendering services and nationwide installation services. The Shade Store has over 60+ showrooms nationwide. For more information on The Shade Store, please visit http://www.theshadestore.com.
About Leonard Green & Partners, L.P.
Leonard Green & Partners, L.P. (“LGP”) is a leading private equity investment firm founded in 1989 and based in Los Angeles. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 90 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. LGP primarily focuses on companies providing services, including consumer, business, and healthcare services, as well as retail, distribution, and industrials. Its most recent fund, Green Equity Investors VII, L.P. (“GEI VII”), closed in 2016 with $9.6 billion of committed capital. For more information, visit www.leonardgreen.com.
About Great Hill Partners
Great Hill Partners is a private equity firm that has raised over $5 billion in commitments since inception to finance the expansion, recapitalization, or acquisition of growth companies in a wide range of sectors in business-to-business and business-to-consumer industries including software, financial and healthcare technology, digital media, eCommerce, and internet infrastructure. Great Hill targets investments of $25 million to $200 million. For more information, visit www.greathillpartners.com.
The Shade Store:
Michael Crotty, Chief Marketing Officer