GigaCloud Technology Inc. (NASDAQ: GCT) announced on October 24, 2025 that it has entered into a binding term sheet to acquire 100 % of the outstanding equity interest of New Classic Home Furnishings, Inc. for a total consideration of $18 million on a debt‑free basis, subject to customary net working capital adjustments and a post‑close earn‑out tied to 2026 recurring revenue milestones.
New Classic is a profitable U.S. furniture distributor headquartered in Fontana, California, that generates approximately $70 million in annual revenue from a portfolio of more than 2,000 active SKUs and serves over 1,000 retailer customers. The acquisition will add these customers, SKUs, and revenue streams to GCT’s marketplace, while also providing a strong brick‑and‑mortar network that complements GCT’s existing Supplier Fulfilled Retailing (SFR) model.
Strategically, the deal expands GCT’s channel‑agnostic B2B marketplace by integrating New Classic’s long‑standing retail footprint and supply‑chain relationships, which are sourced predominantly from Southeast Asia and the United States. This diversification enhances GCT’s ability to serve both online and offline retailers and strengthens its competitive moat in the large‑parcel e‑commerce space.
The transaction will be funded from GCT’s existing cash reserves and is expected to close on January 1, 2026, subject to customary closing conditions. New Classic will retain its brand identity and management team, allowing for a seamless integration that is anticipated to accelerate cross‑sell opportunities and margin improvements within GCT’s marketplace ecosystem.
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