GigaCloud Technology Inc Completes Acquisition of New Classic Home Furnishings

GigaCloud Technology (Nasdaq: GCT) announced on January 2, 2026 that it completed the acquisition of New Classic Home Furnishings for $18 million in total consideration on a debt-free basis, including a post-closing earn-out.

Rhea-AI Summary

GigaCloud Technology (Nasdaq: GCT) announced on January 2, 2026 that it completed the acquisition of New Classic Home Furnishings for $18 million in total consideration on a debt-free basis, including a post-closing earn-out.

GigaCloud acquired 100% of New Classic, a U.S. distributor founded more than 25 years ago that serves over 1,000 retailer customers and offers more than 2,000 SKUs. The deal was funded from the company’s existing cash on hand and is subject to customary post-closing adjustments, including a net working capital adjustment. The acquisition aims to integrate New Classic’s retailer network into GigaCloud’s marketplace and fulfillment capabilities to expand its large-parcel commerce ecosystem.

Positive

• Customer reach adds over 1,000 retailer relationships
• Product assortment expands by more than 2,000 SKUs
• Full ownership acquired 100% of New Classic

Negative

• Cash outflow of $18 million funded from existing cash on hand
• Price uncertainty due to post-closing adjustments and earn-out

Argus Jan 2 session

-1.32% close to close Open Argus

Details

News Market Reaction – GCT

On Jan 2, the day this news came out, GCT closed 1.32% below the previous close.

Data tracked by StockTitan Argus for the Jan 2 session.

Key Figures

Acquisition consideration: $18 million Equity acquired: 100% Retailer customers: over 1,000 +5 more

Acquisition consideration

$18 million

Total consideration for 100% of New Classic equity, debt-free basis

Equity acquired

100%

Outstanding equity of New Classic under Share Purchase Agreement

Retailer customers

over 1,000

Retailer customers served by New Classic

Product portfolio

more than 2,000 SKUs

New Classic’s product assortment breadth

Operating history

more than 25 years

New Classic’s time since founding in Fontana, California

Current price

$39.28

Prior close before acquisition completion announcement

52-week range

$11.17–$43.85

52-week low and high for GCT before this news

Market cap

$1,455,588,904

Equity value prior to the acquisition completion news

Historical Context

5 past events · Latest: Dec 09

5 events

1. Dec 09

   Network expansion

   24h Move

   +1.8%

   Leased 617,000 sq ft New Jersey fulfillment center, expanding global footprint.

2. Dec 03

   Acquisition agreement

   24h Move

   +1.9%

   Entered definitive agreement to acquire 100% of New Classic for $18M.

3. Dec 03

   Investor conference

   24h Move

   +1.5%

   Announced participation in ROTH Deer Valley event with investor meetings.

4. Nov 24

   AI conference

   24h Move

   -0.2%

   Participation in UBS Global Technology and AI Conference investor meetings.

5. Nov 17

   Forbes recognition

   24h Move

   +5.2%

   Repeated inclusion in Forbes’ America’s Most Successful Small-Cap list.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

skus, fulfillment, definitive share purchase agreement, debt-free basis, +2 more

6 terms

skus technical

"offers a broad portfolio of more than 2,000 SKUs."

SKUs, or stock keeping units, are unique codes used to identify individual products in a company's inventory. They help businesses track how many items they have, sell, or need to restock, similar to how a library assigns specific numbers to books for easy organization. For investors, SKUs provide insight into a company's product lineup and sales performance, which can influence financial health and growth prospects.

fulfillment technical

"into our technology-enabled marketplace and fulfillment capabilities, we are creating"

Fulfillment is the process of receiving, packing and delivering a customer’s order so the product reaches the buyer as promised. For investors, it matters because how quickly and accurately a company fulfills orders affects sales, customer satisfaction and costs—similar to a restaurant getting orders out correctly and on time, where mistakes or delays hurt reputation and profit. Efficient fulfillment signals strong operations and can support growth.

definitive share purchase agreement financial

"under the definitive Share Purchase Agreement."

A definitive Share Purchase Agreement is a final, official document that confirms the details of a sale where one person or company agrees to buy shares from another. It matters because it legally locks in the agreed terms, making sure both sides understand and follow through with the deal. Think of it as the final contract that makes the purchase official.

debt-free basis financial

"for total consideration of $18 million on a debt-free basis, including"

A "debt-free basis" means looking at a company's value as if it doesn't owe any money. It's like checking how much a house is worth if you subtract the mortgage—helping investors see the company's true worth without considering its debts or loans. This measure matters because it shows the company's real financial health and stability.

earn-out financial

"on a debt-free basis, including a post-closing earn-out."

An earn-out is a deal feature in mergers and acquisitions where part of the purchase price is paid later only if the acquired business meets specific future targets, such as revenue or profit goals. It matters to investors because it shares risk between buyer and seller—similar to paying for a used car only if it reaches promised mileage—affecting projected cash flows, valuation assumptions, and the likelihood of future payouts.

net working capital adjustment financial

"subject to customary post-closing adjustments, including a net working capital adjustment."

A net working capital adjustment is a common deal mechanism that compares a company's short-term assets (like cash, inventory and receivables) with its short-term liabilities (like unpaid bills) and adjusts the purchase price so the buyer gets the expected day-to-day operating position. Think of it like settling a household's pending grocery bills and pantry contents when you buy the house — it ensures the buyer doesn’t overpay or underpay for the business’s immediate cash needs. For investors, it matters because it changes the effective price paid and signals how much cash a business needs to run, affecting future cash flow and return assumptions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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EL MONTE, Calif., Jan. 02, 2026 (GLOBE NEWSWIRE) -- GigaCloud Technology Inc (Nasdaq: GCT) (“GigaCloud” or the “Company”), a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, today announced that it has completed the acquisition of New Classic Home Furnishings, Inc. (“New Classic”), a U.S.-based distributor serving the home furnishings market.

Founded more than 25 years ago in Fontana, California, New Classic serves over 1,000 retailer customers and offers a broad portfolio of more than 2,000 SKUs. The acquisition strengthens GigaCloud’s growing ecosystem by adding a well-established wholesale business with broadened retailer relationships and a proven product assortment.

“Closing this acquisition represents another important step in executing our strategy to streamline large-parcel commerce,” said Larry Wu, Founder, Chairman, and Chief Executive Officer of GigaCloud. “By integrating New Classic’s retailer customer network into our technology-enabled marketplace and fulfillment capabilities, we are creating new opportunities for retailers to compete efficiently in an increasingly dynamic trading environment.”

The acquisition was completed following the satisfaction of all customary closing conditions under the definitive Share Purchase Agreement. Under the terms of the agreement, GigaCloud acquired 100% of the outstanding equity of New Classic for total consideration of $18 million on a debt-free basis, including a post-closing earn-out. The purchase price is subject to customary post-closing adjustments, including a net working capital adjustment. The transaction was funded from GigaCloud’s existing cash on hand and was unanimously approved by the Company’s Board of Directors.

About GigaCloud Technology Inc
GigaCloud Technology Inc is a pioneer of global end-to-end B2B technology solutions for large parcel merchandise. The Company’s B2B ecommerce platform, which it refers to as the “GigaCloud Marketplace,” integrates everything from discovery, payments and logistics tools into one easy-to-use platform. The Company’s global marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency. The Company offers a truly comprehensive solution that transports products from the manufacturer’s warehouse to the end customer’s doorstep, all at one fixed price. The Company first launched its marketplace in January 2019 by focusing on the global furniture market and has since expanded into additional categories such as home appliances and fitness equipment. For more information, please visit the Company’s website: https://investors.gigacloudtech.com/.

Forward-Looking Statements
This press release contains “forward-looking statements.” Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For investor and media inquiries, please contact:

GigaCloud Technology Inc
Investor Relations
Email: ir@gigacloudtech.com

PondelWilkinson Inc.
Todd Kehrli (Investors) – tkehrli@pondel.com
Laurie Berman (Investors) – lberman@pondel.com
George Medici (Media) – gmedici@pondel.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did GigaCloud (GCT) acquire on January 2, 2026?

GigaCloud completed the acquisition of New Classic Home Furnishings, acquiring 100% of the company.

How much did GigaCloud (GCT) pay for New Classic Home Furnishings?

The total consideration was $18 million on a debt-free basis, including a post-closing earn-out.

How will the New Classic acquisition affect GigaCloud's customers and SKUs?

The acquisition adds over 1,000 retailer customers and a portfolio of more than 2,000 SKUs to GigaCloud's ecosystem.

How was the New Classic transaction funded by GigaCloud (GCT)?

The transaction was funded from GigaCloud's existing cash on hand and was unanimously approved by the board.

Are there any adjustments remaining on the GigaCloud purchase of New Classic?

Yes, the purchase price is subject to customary post-closing adjustments, including a net working capital adjustment and an earn-out.