NEP Invests in Arteriors
June 25, 2019
- Arteriors is a multichannel leading designer and supplier of premium branded lighting fixtures, furniture and accessories with strong support from the interior designer community
- Company is well known for its bold designs and collaborative service approach
- Investment capital positions Arteriors for significant growth and expansion in product, market channels and geographies
Minneapolis, Minnesota – Norwest Equity Partners (“NEP”), a leading middle market investment firm founded in 1961, has made a significant investment in Arteriors (or the “Company”), a founder-owned, internationally recognized designer and supplier of premium, decorative lighting fixtures, furniture and accessories. NEP’s investment marks the first time Arteriors has partnered with an institutional investor, marking a significant milestone for the Company. The transaction closed on June 18, 2019; financial terms are not disclosed.
Founded in 1987 in Dallas by Mark Moussa, Arteriors has evolved from a boutique accessories company to a multi-channel, premium, decorative lighting and furnishings brand offering an extensive array of products ranging from lighting fixtures, furniture, wall décor and accessories. Over the years, Arteriors has earned strong support from the residential and commercial interior designer community and specialty retailers due to its bold and unique designs, freshness of product offering, and very responsive customer service. The Company has built a longstanding, highly-skilled global network of artisanal factories and currently manages approximately 1,300 active SKUs. Arteriors operates showrooms in Dallas, Los Angeles, London, and New York.
Moussa, Arteriors Founder, shared, “After 30-plus years as a founder-owned business, our entire team is excited for our investment partnership with NEP which will help us prioritize and resource our strategic initiatives and provide capital for growth. Providing superior service and value to our customers will remain our top priority as will our efforts to launch new and innovative, design-driven products. I have never been more excited about our prospects for growth and the future.”
Jason Sondell, NEP Principal, shared, “Arteriors is a terrific fit for our consumer product and distribution investment platform. As part of large, growing, and fragmented segments of the lighting and furnishings market, the Company is well-positioned to grow its market share based on its strong design, longstanding relationships with a global collection of artisanal manufacturing partners, and first-class customer service. We are partnering with Mark and his entire management team in this transaction who have built a tremendous platform for growth.”
Steve Davis, Arteriors CEO, stated, “Bringing in an investment partner is a big decision, but we know that NEP is the right partner for us. We fit together culturally, and our work styles are complementary. I also know that all of the foundational work we’ve accomplished over the last five years, from augmenting our team, to evolving our brand, to implementing scalable processes, to investing in capacity and technology have helped position us for a bright future with NEP by our side.”
NEP has deep experience working with growing, profitable, and scalable industry-leading consumer product and distribution companies, including Stanton Carpet Corporation, Momentum Textiles, Apothecary Products, eyebobs, and Shock Doctor. Tim Kuehl and Tony Armand, NEP Partners who will both join the Arteriors board of directors and partner with Mark Moussa, collectively bring a wealth of investor and industry knowledge to Arteriors, particularly through former experience working together as board members at Momentum Textiles during NEP’s investment period.
Kuehl stated, “Arteriors’ ownership structure, business model, and growth plans all create a trifecta of quality attributes for a NEP investment opportunity. Personally, I am excited to leverage our portfolio learnings and successes to work together again with Tony, Jason, and the rest of the NEP team to help Arteriors continue to build on its already fantastic foundation and solid infrastructure. The combination of our investment team experience and Arteriors’ ability to consistently offer premium products, highly-efficient distribution, and an amazing culture and brand will further support the Company’s growth and drive it to the next level.”
PJ Solomon advised Arteriors on the transaction; Jones Day provided legal services for NEP, and Baker Botts provided legal services for Arteriors; Hancock Capital Management and Bank of Ireland provided senior debt financing; and Norwest Mezzanine Partners provided subordinated debt financing.