Walmart is in talks to buy the carpet sweep funds company called carpet sweeps, which has more than a million customers in some 30 countries, and will be led by its founder, Jeff Greenfield, according to people familiar with the matter.
The deal is expected to close in the second half of this year, the people said.
The new company will take over the carpet sweep funds business, which provides a service that helps shoppers who can’t afford carpet cleaning services.
The move is expected in part because of the growing popularity of carpet cleaning and because carpet cleaning costs are expected to rise by about 25 percent next year, according the people, who asked not to be identified discussing private business matters.
Walmart also is looking to invest in more of its warehouse facilities in the U.S., and a new Walmart Store in Los Angeles is being built in the heart of the city, people familiar of the deal said.
Greenfield and his wife, Mary Greenfield-Greenfield, have deep pockets, and they have been in discussions with multiple buyers, according for weeks.
More: The Greenfields have been investing heavily in other businesses, including a venture-capital firm, which also has an interest in the company, according those people, adding that Jeff has been working on a new book, “Carpet Cleaning,” that will be published in 2017.
The book, which will include “tips and tricks” for carpet cleaners, is being produced by the same team that made the book, these people said, adding the couple are also developing a new website, carpetcleaners.com.
Walmart declined to comment.
The company will keep its current name, but the name will change to Walmart.com, these sources said.
“Jeff Greenfield has been a leader in the carpet cleaning industry for decades, and his commitment to the carpet industry and to his customers will continue to be a driving force of the Walmart brand,” said a Walmart spokesman.
Walmart stores have been offering carpet cleaning since at least 2001, and the company is known for providing services to the homeless and in communities with drug addiction and other issues.
The company has also built its own warehouse in New Jersey, and has been investing in its other facilities in other cities.
Walmart stores are typically found at major shopping malls.
Greenfield has a history of raising funds from investors including venture capital firms.
He has raised money from other investors, including venture capitalists, in the past, and in 2015 he raised $2 million from Sequoia Capital, which was led by Jeff Bezos, the founder of Amazon.com and co-founder of The Washington Post, as well as investors including Bill Gates and Mark Cuban.
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