Modani's showroom in San Francisco, California
Maisons du Monde is acquiring a majority stake in U.S retailer Modani, catapulting the European furniture and accents retailer into the North American market for the first time.

The French furniture business — which has just launched its debut UK stores (see related) having originally entered the market here online — is buying a 70 percent stake in the coast-to-coast retailer, with an option over the remaining shares.

Miami based Modani recorded EBITDA of $4.9 million (£3.6m) on sales of $41.4 million (£30.5m) in 2017, employing 101 people across its ten stores, which are located in major cities across the U.S including two in New York.

Maisons du Monde did not immediately disclose the acquisition price, though said the deal was funded from existing cash resources with no recourse for additional debt. The Furnishing Report estimates the deal to be worth $25m–$30 million.

It said Modani's economic model is very similar to its own; that of an aspirational brand based on a furniture collection designed in-house, multiple categories and styles, regularly renewed and at affordable prices. It said the transaction gave it a foothold in the American market, and helped advance its goal of growing its international footprint.

It announced the deal alongside a first quarter trading update and its CEO succession plan, with Maisons du Monde growing January–March sales 11.5 percent year-on-year to €255.1 million. It also disclosed that Julie Walbaum will be promoted to CEO this summer, replacing Gilles Petit.

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