- Food52 last week announced it has entered into a definitive agreement to acquire Portland, Oregon-based lighting and lifestyle goods company Schoolhouse for about $48 million in cash and stock, funded by TCG. The deal is expected to close by the end of the year, subject to customary closing conditions.
- The company also announced it received an investment from TCG of an undisclosed amount. Upon the news, Food52 said its valuation will triple from when TCG made its initial majority investment three years ago, according to a company press release emailed to Retail Dive.
- Food52 said it will use the funding toward brick-and-mortar retail, a pantry brand and the build-out of its creative studios.
With its acquisition of Schoolhouse, Food52 continues to grow its commerce capabilities to complement the content side of its business.
"We're admirers — and longtime customers — of Schoolhouse, and we feel a powerful kinship with their mission," Amanda Hesser, CEO and founder of Food52, said in a statement. "They've been helping people find joy and comfort in their homes for nearly two decades. We're also excited to be part of the community they've built in Portland, a city known for its bounty of creators and innovative companies."
Schoolhouse will be led by its president, Sara Fritsch, alongside Hesser and Food52 President Claire Chambers. The brand will retain existing jobs and continue to be operated in Portland, Oregon.
This latest acquisition also helps Food52 strengthen its position in the home category. The company launched its online shop in 2013, and in 2020, it launched the Home52 vertical after seeing triple-digit growth of home products in its shop. In May this year, Food52 announced it acquired housewares brand Dansk and is currently working to revitalize the brand.
But in addition to adding a new brand to its portfolio, Food52 received a fresh injection of funding. Since TCG made its initial investment in the company in 2019, Food52 has more than doubled its revenue, per the release.
"The partnership with Amanda [Hesser] and the team at Food52 has been fantastic," Mike Kerns, a general partner at TCG and a director on Food52's board, said in a statement. "The company's performance has exceeded our expectations, and their prospects for the future in this massive category are brighter than ever. We are thrilled to be doubling down on our investment."