Kravet, the storied fifth-generation family-owned fabric and furnishings business, has sold a majority stake to private investment firm Dunes Point Capital. While the Kravet family will retain a significant stake and continue to lead the Woodbury, New York-based company, the financial specifics of the deal have not been revealed.
Cary Kravet, the CEO, mentioned that the decision was the result of careful consideration and strategic planning for the company's future. He expressed confidence that this was the right moment to bring in an investment partner.
Photo: Kravet.
Dunes Point, founded in 2013 by Timothy White, a former executive at Blackstone, began as a family office but has since raised approximately $1.5 billion and acquired over 100 companies. The firm focuses on acquiring family- or founder-led businesses, such as Sonneman and Stanton, which remain under the management of their founding families. Dunes Point's strategy involves acquiring a "platform" brand in a sector, such as roofing or doors, and then expanding the portfolio with complementary businesses. This approach could position Kravet as the anchor for future acquisitions, although Cary Kravet refrained from discussing any potential plans.
The partnership is not expected to bring major operational changes to Kravet. However, Cary Kravet acknowledged that Dunes Point's expertise, particularly in technology, could enhance the company's efficiency. The firm's strength in areas like AI and data analysis could prove valuable, especially in an industry where leveraging data is key to staying competitive.
Kravet assured customers that they would not notice any significant changes. The same team will continue to serve clients, and the brand's commitment to its customers remains unchanged. Cary Kravet expressed that the main difference customers might observe is the announcement itself, adding that Dunes Point's involvement is intended to support the company's growth.
For Kravet, ongoing success is measured by the longevity and strength of its client relationships. The loyalty of customers, who have many options in the market, speaks to the company's continued relevance and trustworthiness.
Founded in 1918, Kravet is one of the oldest brands in the industry and a notable example of a business that has remained within the same family for generations. Despite the shift brought about by selling a majority stake, Cary Kravet remains positive. He believes in embracing change and adapting to it, whether initiated by the company or not.
Source: www.businessofhome.com