US furniture giant Ashley Home to pay $1 billion to acquire online mattress platform Resident
The Israeli-founded Resident, a leading digital retailer and wholesaler of mattresses and bedding accessories, is estimated to have registered revenue of $900 million in 2023
Online mattress seller Resident has been sold for a billion dollars to the American furniture giant Ashley Home. Among the biggest beneficiaries of the transaction are Israeli founders Ran Reske, Craig Schmeizer, Eric Hutchinson and Sharon Dagan, along with a number of institutional entities from Israel, led by More Investment House, Phoenix, Menorah, and Psagot. Most of these entities invested in Resident during a $130 million fundraising round led by ION in 2021. At the time, the company was valued at approximately $700 million.
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Resident operates in the online furniture and mattress market, which is estimated to be worth $250 billion annually. The company primarily focuses on the mattress category in the U.S., which has an annual turnover of approximately $16.5 billion.
Recent estimates suggest that Resident concluded 2023 with revenues of $900 million and an operating profit margin before taxes and depreciation (EBITDA) of 10%. In 2018, it was recognized as the fastest-growing e-commerce company in the U.S. by "Internet Retailer," a magazine that ranks major online retailers in the country.
Through its Nectar, DreamCloud, Awara, and Siena brands, Resident has established itself as a leading online seller of mattresses and bedding accessories. Resident's success is underpinned by its expertise in data science and analytics, performance marketing, and e-commerce technology. In addition to Resident's digital presence, Resident's mattresses are sold at over 2,500 retailers nationwide as well as in Canada and the U.K. As part of the transaction, Co-Founders and Co-CEO's of Resident, Eric Hutchinson and Ran Reske, will remain in their positions post-closing.
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Established in 2016 in Israel by Schmeiser, Dagan, Reske, and Hutchinson, Resident is controlled and majority-owned by the latter two, who serve as joint CEOs from their base in San Francisco. Schmeiser does not hold an active management position in the company.
Ashley is renowned as the largest furniture company in North America, with its parent company operating in 155 countries and employing 35,000 people.
