New Berlin-based clock and home décor distributor FirsTime Design Ltd. has acquired Dalton, Georgia-based bedding and home goods distributor InnerSpace Luxury Products. The transaction was completed via stock purchase June 16 for an undisclosed price.
FirsTime announced the transaction in its report today of its second quarter earnings, which were negatively impacted by the acquisition costs.
In the second quarter, FirsTime reported a net loss of $361, or 24 cents per share, driven by $263 in acquisition costs.
For the first half of 2017, FirsTime recorded $3,516 in revenue, down 8.5 percent year-over-year. The second quarter included 15 days of operations with InnerSpace. FirsTime estimated that had InnerSpace been acquired January 1, revenue would have totaled $6,736 for the first half of 2017, up 75 percent from the first half of 2016.
“We are very pleased with both the addition of high quality product lines and with the quality of the people and talent who have joined our team as a result of the acquisition of InnerSpace,” said Christopher Bering, chairman and chief executive officer of FirsTime. “InnerSpace is an online retailer of home décor products, similar to our core product offering at FirsTime, as well as a distributor of mattresses and other related products for the Over the Road Truck Industry called the Mobile InnerSpace division. We feel that both the online retailer of home décor, as well as the Mobile InnerSpace division, provide significant growth opportunities. We have already begun to integrate our design expertise and innovative marketing approach at InnerSpace, which will allow us to reveal exciting new products in 2018.”
“More opportunity and synergies are being discovered each week as we move through the overall integration process,” said Andrew Bass, a director on FirsTime’s board. “We feel that the overlap between InnerSpace and FirsTime’s home décor businesses should continue to provide ample profit margins to reinvest into robust revenue growth going forward. The financial benefit that InnerSpace is expected to provide comes at an important time in our history as we continue to expand our product offerings and further diversify our market channels in order to de-risk FirsTime as a whole.”
FirsTime’s products are sold at major retailers including Kohl’s, Bed Bath & Beyond, Bon-Ton stores and more. FirsTime partners with manufacturers in China and Southeast Asia to manufacture its products and has a 50,000-square-foot distribution facility in New Berlin.