Fab.com finally has a new home.
PCH International, a company that helps startups design and manufacture hardware products, has announced that it has purchased the shopping site that was the one-time darling of venture capitalists and design aficionados alike. Re/code reported last month that the deal was all but done.
PCH CEO Liam Casey declined to comment on a price, but Re/code previously reported Fab would sell for $7 million in cash and about $8 million in stock, based on PCH’s most recent financing round. Fab.com’s 35 employees will join PCH as part of the acquisition, the company said.
In an interview, Casey said PCH would use Fab.com as a sales channel for the hardware products it helps startups make and use the platform to introduce some customized versions of these products that aren’t found anywhere else. PCH’s clients include the Internet-connected ring company Ringly as well as littleBits, a startup that makes modular electronic kits. Casey said Fab has come a long way since it gave up on the “distraction” of holding inventory in favor of drop-shipping, and that its current model is friendlier to hardware startups that get taken advantage of by the economics of brick-and-mortar retail.
“In our business, inventory is evil,” he said.
Fab.com co-founder and CEO Jason Goldberg won’t be joining PCH. Instead, he’ll be fully focused on Hem, a furniture company that makes its own furniture and sells it through its site. Goldberg had already taken more than 100 Fab employees with him to Hem, as well as tens of millions of dollars of investors’ money, with their sign-off.
Fab.com was founded in 2011 and raised more than $300 million, but fell apart as marketing spend grew out of control and its product catalogue grew too large, diluting the original design aesthetic it was known for. As recently as 2013, Fab, which investors once valued at nearly $1 billion, employed 750 people.
“It’s personally very satisfying to see Fab land in a great place with PCH,” Goldberg said in a statement. “PCH is known for its world-class operations and its deep appreciation for brand, design, and the customer experience.”
This article originally appeared on Recode.net.