Third Bench Holdings signed a binding letter of intent to acquire Rasmussen Custom Cabinetry, a Salt Lake City, UT -area manufacturer, distributor, and installer of residential cabinets north of Salt Lake City, Utah.
Third Bench Holdings, which is owned and funded by New America Energy Corp. (OTC PINK:NECA), already owns Davis Kitchens in Tucson, AZ; OGB Architectural Millwork in Albuquerque, NM; and Sher-Wood in Las Cruces, NM.
“The Utah market is very strong, and Rasmussen is ideally positioned to continue to ramp up sales in Utah,” according to a news release issued by New America Energy. Rasmussen, which is operating at about $10 million in revenue for 2022, has the capacity to manufacture residential cabinets to be shipped to the company’s Davis Kitchens locations in Albuquerque, NM and Tucson, AZ, as well as the Las Cruces Cabinets location in Las Cruces, NM, Third Bench says.
“We are very excited about the vertical integration opportunities for all of our operations through the acquisition of Rasmussen,” says David Fair, CEO of Third Bench. “Having our own captive residential cabinetry brand really differentiates us from our competition. We can also have better control over lead times, design approaches, colors, and styles.”
Combined with the company’s other operations, Rasmussen should be in a position to almost double output by manufacturing cabinets for Third Bench’s subsidiaries, Fair says.
Rasmussen’s founder, Colton Rasmussen, and its CFO Joshua Riedesel, will continue to manage and operate Rasmussen under Third Bench.
“We have been extremely impressed by Colton and Josh. Their accomplishments in building Rasmussen into what it is today are tremendous. We are very happy to have them as an integral part of our management team. Fair says, “There will be tremendous synergistic value with this acquisition by selling their cabinets at our residential operations throughout the Southwest.”
Third Bench operates five subsidiary companies providing architectural millwork, and supplying dealers in the cabinetry, kitchen and bath areas throughout the Western U.S. for customers from California to Texas. Third Bench also provides installation services as a part of its vertical offering. Prior to the acquisition of Rasmussen, Third Bench employed over 130 people and had revenue of about $24 million in 2021.
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