Blackford Capital, a Grand Rapids, Michigan-based private equity firm, has acquired LTD Online Stores, a patio furniture e-commerce business and wholesale distributor that markets and sells middle to high-end furniture through wholesale/drop-shipping, a direct-to-consumer website and a retail storefront in San Diego.
Terms of the acquisition were not disclosed.
LTD Online Stores includes Patio Productions and Harmonia Living.
The move, which was announced in a prepared statement, marks the third addition to Blackford’s Patio Portfolio in the past year, joining Artificial Turf Supply and Starfire Direct as the platform evolves to become a one-stop shop for all outdoor living needs within the backyard consumer segment.
“Expanding our Patio offerings to include high-end patio furniture has been a critical target since the platform’s inception in 2022,” says Paul Doyle, managing director at Blackford Capital and chairman of the Patio Portfolio. “LTD has maintained an impressive growth trajectory before, during and beyond Covid due, in large part, to their high-quality furniture, sales channels and diverse customer base. We’re excited to welcome LTD to the Patio Platform and look forward to expanding our highly diversified product mix across a proven omnichannel distribution network.”
Ben Harvey, LTD president of wholesale and retail, and LTD Online President Todd Harmon will both maintain their roles following the acquisition. In 2008, LTD began designing, manufacturing and selling its own products before opening a retail showroom in 2017.
“For the past 15 years, we have built LTD and our brands Patio Productions and Harmonia Living into an all-inclusive, one-stop furniture shopping destination, with a goal of providing our customers with only the finest outdoor furniture the web has to offer,” says LTD’s Harmon.
“Teaming up with a like-minded partner like Blackford Capital, with its performance history and strong leadership team, not only expands LTD’s reach and product offerings but furthers our dream of being a leader in this space.”
The businesses grew out of necessity. In 2008, Harvey and Patio Productions were successfully selling imported goods out of the San Diego store, but the retailer’s main Asian importer went out of business. Harvey’s response was to take over exclusivity on the line and bring in his own containers.
Fifteen years later, Harmonia Living, with seven different factories in three different communities, was supplying not only Patio Productions but 30 or 40 other dealers in both outdoor and indoor furniture (since 2010) as well.
What the moves meant for the overall business was that it accounted for a big percentage of revenue and was scalable. And it happened at the right place at the right time: When the pandemic began, Patio Productions didn’t necessarily have to compete with scores of other patio stores for stock; instead, it could order its own from its own importer and ship it out in just a few weeks, versus several months, as was the case with many others.
Today, Patio Productions’ parent company, LTD, serves a wide-ranging customer base through three distinct channels: e-commerce, retail showrooms and its wholesale segment. LTD’s channel and customer diversification, including sales through various large e-commerce retailers, combined with favorable market conditions that are expected to be sustainable through the coming years, have helped the business maintain steady product pricing, revenue and margin improvements beyond Covid.
For its part, Blackford Capital works toward acquiring, managing and building founder and family-owned, lower-middle-market companies, with a focus on the manufacturing, industrial and distribution industries, a disciplined and relentless approach to value creation, and a focus on operational excellence and a compelling culture.
Most recently, Blackford was named to Inc.’s 2023 list of Founder-Friendly Investors, was recognized by ACG Detroit with the 2023 M&A Dealmaker of the Year Award and won the 2023 Small Markets Deal of the Year by both Buyouts Magazine and Global M&A Network Atlas Awards.
“This acquisition furthers our goal of consolidating our suite of portfolio companies dedicated to ‘curating the backyard’ and sets us up to accelerate growth and gain market share within the growing backyard consumer segment,” says Blackford’s Doyle.
