Nov 15, 2011
High Road Capital Partners Acquires Leading Quilting Machine Manufacturer
High Road Capital Partners ("www.highroadcap.com) has completed the eighth platform acquisition for its debut fund, High Road Capital Partners Fund I, LP, with the acquisition of Handi Quilter, Inc. Based in North Salt Lake, Utah, Handi Quilter is the worldwide leader in longarm quilting machines and computerized quilting systems used in the home by quilting enthusiasts and quilters with home-based businesses. The acquisition closed on November 14, 2011.
“High Road believes there is significant opportunity in the quilting market, with over 20 million quilters just in the United States,” said Bob Fitzsimmons, High Road’s Managing Partner. “In addition to an aging demographic with more time for hobbies, there is a growing number of serious quilting enthusiasts who seek to use the tools of the professional quilter at home.”
High Road Partner Bill Connell added, “We are delighted to partner with Handi Quilter’s excellent management team, which has steadily increased the company’s dedicated user base and successfully created innovative products for different market segments. We plan to build upon the company’s market-leading position by further expanding its distribution network and making complimentary add-on acquisitions.”
“Handi Quilter has grown 50 percent over the past three years and we now distribute our products in 13 countries,” said Mark D. Hyland, President and Chief Executive Officer of Handi Quilter. “Under this new partnership and ownership, Handi Quilter can further expand domestically and internationally, and continue to create new and innovative products for quilters throughout the world.”
CEO Mark Hyland and Chief Operating Officer and Chief Financial Officer Darren Denning, along with other key management members, will remain with the company in their current roles. The company’s management team made a significant investment in the transaction alongside High Road.
Bill Connell, Partner, and Dan Gaspar, Vice President, led the transaction for High Road. Also working on the transaction from High Road were Partner William Hobbs and Associate Paul Langley. Senior debt financing for the transaction was provided by U.S. Bank and subordinated debt was provided by Babson Capital Management. Prestwick Partners advised the sellers. Terms of the transaction were not disclosed.
High Road has completed 15 transactions – eight platform investments and seven add-on acquisitions – over the past three years for its debut fund, High Road Capital Partners Fund I, LP.
For further information, please contact Bob Fitzsimmons of High Road Capital Partners at (212) 554-3265.High Road Capital Partners
High Road Capital Partners is a private equity firm focused on smaller middle market transactions. High Road was formed in 2007 and currently manages over $150 million of committed capital. High Road focuses on niche-leading companies with revenues of $10 million to $100 million and EBITDA of $3 million to $10 million. Once acquired, High Road works in partnership with management to take the companies to the next level, with the expectation of doubling or tripling EBITDA during the course of its ownership through a combination of organic growth initiatives and add-on acquisitions. More information on High Road may be found on its website, www.highroadcap.com.Handi Quilter, Inc.
Handi Quilter, Inc. is the leading innovative manufacturer of branded and OEM quilting machines, frames, tables, computerized quilting systems, and quilting accessories. Handi Quilter’s products are primarily used in the home by dedicated quilting enthusiasts as well as by quilters with home-based businesses. Since the company’s founding in 1999, it has consistently introduced innovative new products, entered new markets, and delivered exceptional quality and service by building relationships with its retail partners and end consumers Handi Quilter has experienced 50 percent growth in the last three years and has become the largest long-arm quilting machine manufacturer. Handi Quilter has more than 70 employees and its products are produced at the company’s 30,000 square foot corporate/education office and manufacturing facility in North Salt Lake, Utah. Today, Handi Quilter distributes products in 13 countries through more than 800 independent sewing and quilting retailers throughout the world. More information on Handi Quilter may be found on its website, www.HandiQuilter.com.
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