Terravest Income Fund Acquires 80% Interest In Stylus, Made to Order Sofas

Furniture World Magazine

TerraVest, a Canadian Income Fund that trades on the Toronto Stock Exchange, has completed the purchase of an 80% equity interest of custom upholstery manufacturer Stylus, Made to Order Sofas of Burnaby, BC (Canada). The terms of the purchase agreement include current senior management remaining with the company in their current roles. The purchase will be financed through a public offering of TerraVest units totaling approximately $30 million. Founded in 1959, Stylus has grown to one of Canada's leading custom order upholstery manufacturers. Operating out of 110,000 square feet of manufacturing and warehouse space, Stylus generates annual sales exceeding $35 million and EBITDA of approximately $5.1 million. The sale includes Stylus' fabric wholesale division, Bert Woll Fabrics, and its imported leather upholstery division. TerraVest is an income fund that acquires profitable companies with operating revenues of $20-100 million that generates sustainable cash flow. TerraVest's acquisition criteria requires current senior management to remain with the company. TerraVest cites Stylus custom order business, its strong niche against imported Asian upholstery lines and it's history of profitability as key reasons for the aquisition.