Canada’s Kitchens, the most over-engineered business in the world, is set to become the first Canadian company to become a $10 billion US company with a US market cap of $10.5bn by 2021.
Kitchenware, formerly known as Kitchen Solutions, acquired Kitchen Solutions Ltd (KSIL), the global maker of kitchens, at the start of the year.
The new company will now control more than 40% of Kitchen Solutions’ US business.
Kitchens, which was founded in 1989 by Canadian businessman Zach Kitchen, has a global footprint and a strong focus on the home and restaurant market.
The company sells kitchens, kitchens and kitchenware to a wide range of clients, including restaurants, restaurants catering, hotels, shopping centers and other hospitality firms.
The company is based in Toronto, Canada, but also operates in several US states and Canada.
Kitchnetworks is now set to take over Kitchen Solutions with Kitchenware’s US arm accounting for nearly a quarter of its revenue.
The sale will allow Kitchenware to take advantage of the rising market value of its US assets and focus on expanding into the US market, according to Kitchenware CEO Zach Kitchen.
“We’re extremely excited to become an integrated player in the US kitchenware market and see a lot of great opportunities in this region,” Kitchenware co-founder and CEO Zach Labrie said in a statement.
“Our US kitchen assets are extremely valuable and we are thrilled to partner with KitchenWorks to become Kitchenware Canada.”
The acquisition comes at a critical time for Kitchenware.
The brand, known for its sophisticated appliances, is facing a global resurgence.
The value of the Kitchenware brand, however, has fallen significantly over the past several years.
KitKitchenworks’ value is expected to rise to $1.1 billion by 2021, according a recent report by research firm IDC.
That’s up from $839 million in 2020, but it’s still less than half of the value of Kitchenware itself.
Kitware has seen its share of bad news in the last few years.
The Kitchenware brands most prominent products, including its popular Kettle and Bar, were accused of producing harmful levels of lead, among other problems.
KitWare also faced the ire of consumer advocacy groups and government officials in the wake of a recall of the Kettle.
At the time, Kitchenware announced it would suspend all sales of the products due to concerns about lead contamination.
In an interview with Business Insider, Kitchen Works CEO Zach Gordon said that the recall was a result of the company’s lax control of the supply chain and the inability to control the contamination in the supply process.
“We knew the risks in the Kitchen Works supply chain,” Gordon said.
“But the real problem was the lack of proper controls.
The quality control failed.
That led to an uncontrolled release of lead.”
The recall affected almost 1 million Kettle products.
In the past few months, Kitchenworks has announced that it will discontinue the Kettles in the United States, and plans to phase out the entire Kettle brand in 2019.