The Container Store is a specialty retailer that sells storage and organization solutions as well as custom closets. Closet Works, based in Chicago, was acquired by The Container Store for 21.5 Million Dollars. This acquisition will allow The Container Store to expand its manufacturing capabilities to include wood-based areas and increase its premium wood-based product offerings. Elfa, a wholly-owned subsidiary of The Container Store, already produces the popular component-based systems.
The acquisition gives The Container Store access to high-quality equipment and facilities in central America. This will enable them to manage the entire process, from product manufacturing through to installation. The company will have increased control over quality and better profit margins. The Container Store plans to offer customers more design customization options and premium wood-based space such as closets, garages and home offices.
Satish Malhotra (The Container Store President and CEO) said, “As part our effort to increase our sales over the long-term, I am thrilled announce our strategic acquisition Closet Works.” This acquisition will allow us to satisfy the growing consumer demand to have premium wood-based closets and expand our capabilities. We are aiming to increase our share of the six-billion dollar custom closet market, especially in spaces over 2,000 dollars. With increased profit margins, this acquisition will also enable us to fulfill the increasing demand for these spaces. Closet Works’ talented team is our partner in strengthening our leadership position within this market.
Closet Works President, and former co-owner Tom Happ has joined The Container Store to become President of Closet Works. He will also assist in the integration. The transaction was completed on December 30, 2021.