by Acquisition expands Gigacloud’s B2B ecosystem into brick-and-mortar wholesale
EL MONTE, Calif. — GigaCloud Technology Inc., a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, today announced its entry into a binding term sheet for the acquisition of 100% of outstanding equity interest of New Classic Home Furnishing Inc. for $18 million.
Based in Fontana, California, New Classic is a profitable U.S.-based furniture distributor with 25 years of history, primarily servicing brick-and-mortar retailers across North America. New Classic generates approximately $70 million in annual revenues by offering a diverse portfolio of over 2,000 active SKUs and servicing over 1,000 retailer customers. The acquisition strategically combines GigaCloud’s e-commerce marketplace and operational expertise with New Classic’s long-standing brick-and-mortar footprint. The acquisition further diversifies the company’s supply chain, with New Classic sourcing predominantly from Southeast Asia and the United States, and less than 3% from China.
“This acquisition is a pivotal step in our long-term vision for building a truly channel-agnostic B2B marketplace,” said Larry Wu, founder and CEO of GigaCloud. “New Classic provides us with an extensive network of valued suppliers and brick-and-mortar retailers, along with deep expertise in the brick-and-mortar segment. This gives us the strategic foundation we need to begin serving these vital retailers with a new level of support and opportunity. We are excited to welcome New Classic’s partners into the GigaCloud ecosystem and confident that together, we will build a more connected and efficient future.”
“This transaction is about bringing the best of both worlds to our retailer customers,” said Jean Tong, founder and CEO of New Classic. “By integrating New Classic’s established brick-and-mortar network and GigaCloud’s transformative technology and fulfillment capabilities, we can now provide more value to our retailer customers by offering a more complete and flexible suite of solutions and products. This combined strength ensures we are better equipped to meet their evolving needs, both today and tomorrow.”
The term sheet provides for total consideration of $18 million on a debt-free basis, subject to customary net-working capital adjustments, and is inclusive of a post-close earn-out based on the achievement of certain recurring revenue milestones in 2026. Under the acquisition, New Classic will maintain its brand identity and management team. The transaction will be funded from GigaCloud’s existing cash on hand.
The transaction is expected to close on Jan. 1, 2026, subject to customary closing conditions. There is a possibility that the transaction may not close.
