Israeli mattress company Resident has been sold to U.S.-based furniture company Ashley Home in a deal worth $1 billion. Among the major beneficiaries of the deal are founders Ran Reske, Craig Schmeizer, and Eric Hutchinson, along with several institutional bodies from Israel, headed More Investment House, Phoenix, Menorah, and Psagot. Most of the companies invested in Resident via a $130 million fundraising round led by the ION fund in 2021, valuing Resident at approximately $700 million.
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Resident operates in the furniture and mattress e-commerce sector, estimated to generate $250 billion annually. The company focuses on mattresses in the U.S., whose annual revenue is estimated at around $16.5 billion. Online sales in the American furniture sector account for 20%-30%, with Resident holding around 11% of this market.
According to current estimates, Resident ended 2023 with revenues of $900 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of 10%. In 2018, it was declared the fastest-growing e-commerce company in the U.S. by Internet Retailer, a magazine that ranks all major online retailers in the U.S. According to industry sources in Israel’s e-commerce market, Resident's revenues surpass those of all Israeli companies in this sector.
Resident holds four different mattress brands and a furniture and home product brand. These are sold via online store and in about 2,000 stores across the U.S., as part of collaborations with American furniture and mattress retailers. The company's leading mattress brands are called Nectar and DreamCloud, which are also sold in the UK.
Resident was founded in Israel in 2016 by Craig Schmeizer, Ran Reske, and Eric Hutchinson, who control the majority of its shares and management. The latter two serve as co-CEOs and run the company from their homes in San Francisco. Schmeizer doesn’t hold an active management position in the company.
Resident’s activity, which began in Israel, focuses on research and development, marketing, and data analysis, and today the company operates as an American parent company owning an Israeli subsidiary.
The company’s Israeli branch, located in Tel Aviv, employs 26 workers and is managed by Resident CTO Sharon Dagan, and VP of Global Marketing Gil Efrati. The Israeli branch’s operations have grown with the company's expansion, which currently operates to recruit additional technology and data employees. Resident also operates offices in the UK, Ukraine, and India.
Ashley Home is considered one of the largest furniture companies in North America, with its parent company operating in 155 countries and employing 35,000 workers worldwide.