Yaraghi will continue in his role as CEO and as an owner of the company. In addition, Digital Fuel Capital, an e-commerce private equity firm led by Carson Biederman, and Bruce Crain, an experienced consumer products executive who is also an executive partner at Comvest, both co-investors of the deal, will work alongside Comvest as operating partners, according to Comvest, a private equity firm based in West Palm Beach, Florida.
RugsUSA has leading design and global sourcing capabilities, allowing it to provide an expansive selection of area rugs and other home décor products directly to consumers via www.rugsusa.com
, and to other e-commerce marketplaces and retailers through its Nuloom brand.
"Today's consumer demands a broad selection of styles, high-quality product, and a compelling value, all available instantly via an e-commerce shopping experience. RugsUSA is uniquely positioned to address these needs," said Tom Clark, partner at Comvest Partners. "Koorosh has built a truly impressive business, and we are very excited to partner with him and the RugsUSA management team."
"This is an exciting inflection point for RugsUSA. I'm proud of the growth our team has achieved and believe Comvest is the ideal partner to support our future growth initiatives," Yaraghi added.
Said Kevin LaHatte, principal at Comvest Partners, "Comvest has a successful track record of partnering with founder-owned businesses as well as significant experience with both direct-to-consumer and business-to-business sales models, particularly via e-commerce. This experience will enable us to provide support and resources to help the company continue its growth."
Lazard Middle Market served as financial advisor and Blank Rome served as legal advisor to RugsUSA. Financo served as financial advisor and McDermott Will & Emery served as legal advisor to Comvest.
About Rugs USA
A pioneering e-commerce and leader in the area rug industry since 1998, RugsUSA is dedicated to bringing consumers high-quality area rugs and other home decor products from around the world at attractive price points. The Company's expansive selection, low-price commitment, leading fulfillment, and easy-to-navigate website create a seamless buying experience for the customer. For more information, please visit www.rugsusa.com.
About Comvest Partners
Comvest Partners is a private investment firm providing equity and debt capital to middle-market companies across North America. Since its founding in 2000, Comvest has invested over $3.3 billion in over 165 companies. Today, Comvest's funds have over $3.1 billion of assets under management. Through our extensive capital resources and broad network of industry relationships, it offers its companies financial sponsorship, critical strategic and operational support, and business development assistance. For more information, please visit www.comvest.com.