The Riverside Company (Riverside), a global private investment firm focused on the smaller end of the middle market, is pleased to announce that it has completed an investment in U.S. Cabinet Depot (USCD), a leading wholesale distributor of ready-to-assemble (RTA) kitchen and bath cabinetry products based in Marietta, Georgia. MERK Capital Corporation (MERK) and StoneCreek Capital (StoneCreek) are co-investors alongside Riverside in this transaction.
Founded in 2012 by industry veteran Steven Xu, USCD sells premium quality cabinetry and related accessories at a value price point to a diversified base of kitchen & bath dealers and home builders with market-leading customer service and distribution capabilities. The company manages a global supply chain and fulfills deliveries on a timely manner through multiple distribution facilities across the United States.
Steven Xu, who will continue to serve as CEO and remains a significant shareholder in the company, commented, “USCD has experienced tremendous growth since inception approximately 12 years ago, and this partnership with Riverside will help accelerate our domestic expansion efforts. Our team looks forward to building upon USCD’s strong existing leadership position in the RTA cabinetry market. Riverside, MERK and StoneCreek are fantastic partners for the company, and I am excited about this next chapter.”
“We are thrilled to be investing alongside Steven and partnering with him and his management team that have built USCD into a leading player in the value-end of the kitchen & bath cabinetry industry,” said Riverside Managing Partner Sean Ozbolt. The company’s success to date is impressive, and we plan to capitalize on the strong momentum that USCD enjoys through differentiated capabilities in supply chain management, quality control, relationship development and customer service.”
Riverside Partner Andy Fohrer added, “USCD is well-positioned in a favorable segment of the cabinetry market with compelling long-term tailwinds as it plays an important role in supplying high-quality product at an entry-level price point for repair & remodel and new build applications."
The company is at an exciting inflection point with numerous opportunities to meaningfully scale its operations,” said Riverside Principal Max Goldberg. “In partnership with Steven and his leadership team, we will support value-creation initiatives that further optimize the customer experience in existing markets, expand the company’s geographic reach through new facility openings in different regions, broaden USCD’s suite of products and explore other transformative strategic projects.”
This investment is another example of Riverside’s dedication to its Specialty Manufacturing and Distribution Specialization. Riverside has invested in more than 280 platform and add-on companies in the specialty manufacturing and distribution sector since 1988 as part of its private equity and flexible capital strategies.
Working with Ozbolt, Fohrer and Goldberg on this transaction for Riverside were Senior Associate Parul Pubbi and Operating Partner Pradeep Saha. Managing Partner, Origination, Jeremy Holland sourced the opportunity for Riverside from StoneCreek and MERK.
