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01/05/2022

The Container Store Acquires Closet Works for $21.5M

Storage and organization retailer The Container Store has acquired home storage solutions and manufacturing company Closet Works in a $21.5 million deal. The deal closed Dec. 30, 2021.
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The Container Store

The acquisition expands The Container Store’s manufacturing capabilities to include wood-based spaces and enhance its premium wood-based product offering. The Container Store currently manufactures its component-based systems through its wholly owned subsidiary Elfa.

The deal also provides The Container Store with access to centrally-located equipment and facilities, as Closet Works is based in Chicago. The Container Store expects to offer more design customization options to customers and premium wood-based spaces, including closets, garages, home offices, pantries, laundry rooms and Murphy beds. In addition, The Container Store has targeted garages as another area of growth opportunity as a result of the acquisition. 

“This acquisition allows us to meet the growing consumer demand for premium wood-based spaces and expand our capabilities, in an effort to gain a larger share of the estimated $6 billion custom closet market––particularly in spaces above $2,000––with expanded profit margins,” The Container Store President and CEO Satish Malhotra said in a statement. “We look forward to working with the talented team at Closet Works to strengthen our leadership position in this category.”

As part of the deal, Tom Happ has joined The Container Store as president of Closet Works and will assist with the integration.