HomesToLife Ltd (HTLM), a Singaporean furniture company, said on Monday that it has inked a deal with New Century International Homes Pte Ltd to acquire HTL Marketing Pte Ltd, a Singaporean B2B procurer and supplier of premium upholstered sofas and leather materials for sofa manufacturing.
The acquisition is anticipated to be closed in the second quarter of 2025. The acquirer expects that the acquisition will help HomesToLife to leverage HTL Marketing's international network and customer base to access extensive global market opportunities.
Under the terms, New Century will obtain 75 million shares from HomesToLife at a par value of $0.0001 per share, which will be subject to two-year lock-up restrictions.
Post-transaction, the acquirer's revenue is expected to grow from $4 million in 2024 to the range of $250 million to $280 million in 2025. HomesToLife's 2025 net income is also anticipated to be "significantly bolstered" by the acquisition.
For fiscal 2026, HTL Marketing is projected to contribute revenue in the range of $350 million to $400 million with net profit of $15 million to $20 million.
For fiscal 2024, HTL Marketing had reported a net profit of $11 million, on sales of $330 million.
HTL Marketing is wholly owned by New Century, which is, in turn, wholly owned by Golden Hill Capital Pte Ltd., a Singapore-based investment holding company, wholly owned by Phua Yong Pin and Phua Yong Tat, who are the controlling shareholders of both HTL Marketing and HomesToLife.
HTLM was up by 5.26 percent at $4 in the pre-market trade on the Nasdaq.
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