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Home furnishings retailer Crate and Barrel has acquired Hudson Grace, a boutique home decor, entertaining and gift brand based in San Francisco.

Founded in 2012 by veteran retailers Monelle Totah and Gary McNatton, Hudson Grace is known for modern tabletop and entertaining products evoking the coastal California lifestyle.

“We're excited to welcome Hudson Grace and look forward to focusing our digital expertise on creating a wider audience for the brand,” Crate and Barrel CEO Neela Montgomery said in a statement. “Hudson Grace has an entrepreneurial spirit, boutique feel and curated mix of new and vintage product that enhances our current brand portfolio including CB2 and Crate and Kids.”

Northbrook-based Crate and Barrel plans to grow the Hudson Grace brand through retail expansion into niche markets and an invigorated online presence to engage new and existing customers across channels. With more than 47% of their sales coming through online channels, Crate and Barrel will leverage its digital capabilities to grow Hudson Grace's developing e-commerce business. In addition, today's announcement introduces Hudson Grace as a new touchpoint for customers to shop from a Crate and Barrel brand in small-format retail settings. Future plans include the introduction of an edited Hudson Grace collection in select Crate and Barrel stores in time for the holidays.

“Teaming up with Crate and Barrel opens up endless opportunities to expand our visibility and explore new creative concepts while maintaining our unique approach to in-home entertaining through elevated product and merchandising style,” Hudson Grace co-founder Gary McNatton said in a statement. “We're a natural fit.”

Hudson Grace, which operates five California stores and one Atlanta store, will remain a stand-alone business offering intimate and highly specialized shopping experiences in small-format stores. McNatton and Totah will continue to lead all aspects of the Hudson Grace brand while offering design expertise to support growth categories such as textiles, fragrance and modern gifts.

Founded in 1962, Crate and Barrel operates stores throughout the U.S. and Canada as well as franchise locations around the globe. The Crate and Barrel Holdings brand family includes CB2, Crate and Kids and now Hudson Grace, and is owned by the Otto Group, a global retail and services group based in Hamburg, Germany.