Information on the target
Source Capital, through its first SBIC fund, is pleased to announce its investment in Larger Than Average, LLC (the "Company" or "Big Blanket"), a rapidly growing premium branded direct-to-consumer eCommerce soft home goods company. The fund supported the acquisition of the Company by private equity sponsor Altacrest Capital ("Altacrest" or the "Sponsor"), providing debt and equity co-investment financing to support the transaction.
Headquartered in Springfield, MO, Big Blanket has a dominant market share in the oversized blanket category and the largest offering in its class. The Company offers directly to consumers over 40 styles, colors, patterns, and textures of its premium 10' x 10' blanket, originally created by its in-house design team. The vast majority of the Company's products are sold through its proprietary website, with plans for launching other cozy-themed luxurious products to its engaged and loyal customer base in the near future.
Industry overview in the target’s specific country
The Soft Furnishing Retailers industry in the United States has experienced significant growth in recent years, driven by increasing consumer demand for home décor and comfort products. As more consumers prioritize their living spaces, the market for soft furnishings, including blankets, cushions, and curtains, has expanded. This trend is particularly evident in the direct-to-consumer eCommerce segment, where brands like Big Blanket have leveraged online platforms to reach a wider audience.
In the U.S., the rise of eCommerce has transformed the retail landscape, allowing soft furnishing retailers to bypass traditional brick-and-mortar stores and connect directly with consumers. This shift has been accelerated by the COVID-19 pandemic, which prompted many consumers to invest in home improvements and comfort items as they spent more time at home. The convenience of online shopping, coupled with the ability to offer a diverse range of products, has positioned eCommerce brands favorably within the industry.
Moreover, the growing trend of personalization in home goods has led to an increase in demand for unique and customizable products. Consumers are seeking items that reflect their personal style and enhance their living environments. This trend has encouraged soft furnishing retailers to innovate and expand their product offerings, catering to a more discerning customer base that values quality and design.
As the industry continues to evolve, competition among soft furnishing retailers is expected to intensify. Brands that can effectively differentiate themselves through product quality, customer experience, and marketing strategies wi…