GigaCloud Technology, a pioneer in end-to-end B2B technology solutions for large parcel merchandise, has announced its entry into a binding term sheet to acquire 100% of the outstanding equity of New Classic Home Furnishings for $18 million.
The acquisition marks a strategic milestone for GigaCloud as it broadens its reach beyond ecommerce into the brick-and-mortar wholesale segment, reinforcing its position as a channel-agnostic B2B marketplace.
Based in Fontana, California, New Classic is a profitable U.S.-based furniture distributor with 25 years of experience supplying retailers across North America. The company generates approximately $70 million in annual revenue through a diverse product line of more than 2,000 active SKUs and a customer base of over 1,000 brick-and-mortar retailers. Its sourcing strategy is highly diversified, with the majority of products coming from Southeast Asia and the United States, and less than 3% from China.
The acquisition is designed to bring together New Classic’s extensive retail relationships and GigaCloud’s advanced technology-driven marketplace. By combining operational expertise, global logistics, and a robust ecommerce infrastructure with New Classic’s established retail footprint, GigaCloud aims to bridge the gap between physical and digital wholesale operations.
Under the terms of the agreement, the $18 million transaction will be funded entirely from GigaCloud’s existing cash reserves and will be completed on a debt-free basis, subject to customary working capital adjustments. The agreement also includes a post-closing earn-out tied to recurring revenue milestones expected in 2026. Once finalized, New Classic will continue to operate under its existing brand and retain its leadership team to ensure continuity with its customers and suppliers.
The deal underscores GigaCloud’s strategy of expanding its B2B ecosystem into complementary channels, leveraging technology to streamline commerce for large parcel goods such as furniture and appliances. The transaction is expected to close on January 1, 2026, pending customary closing conditions.
The acquisition follows a strong growth trajectory for GigaCloud, which launched its marketplace in 2019 and has since become a key player connecting Asian manufacturers with Western resellers. By integrating New Classic’s operations, GigaCloud aims to enhance its supplier diversity, offer greater flexibility to retailers, and further strengthen its supply chain resilience across North America and Asia.
KEY QUOTES:
“This acquisition is a pivotal step in our long-term vision for building a truly channel-agnostic B2B marketplace. 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.”
Larry Wu, Founder and Chief Executive Officer, GigaCloud Technology
“This transaction is about bringing the best of both worlds to our retailer customers. 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.”
Jean Tong, Founder and Chief Executive Officer, New Classic Home Furnishings
