WILsquare Capital has acquired TekBrands, a provider of equipment and services to the quilting and crafting sector.
TekBrands is a designer and e-commerce-based marketer of a range of branded products sold and used by quilting and crafting enthusiasts and retailers. The company’s products include electric and manual fabric cutters, cutting dies, quilting patterns, cutting mats, sewing supplies, storage trays and cabinets. TekBrand’s company-owned brand names include AccuQuilt, AccuCut, Custom Shape Pros, and MemoryStitch.
Omaha, Nebraska-headquartered TekBrands was founded in 1990 by the husband and wife team of Steve and Lynette Nabity, and today is led by CEO Mary Kay O’Connor-Wente.
“The leadership team and I are pleased to partner with WILsquare,” said Ms. O’Connor-Wente. “We immediately knew they were the best partner to take us into the next level of growth. The culture and values of WILsquare fit perfectly with TekBrands, and we are excited about their commitment to support the future growth of the business.”
“We are delighted to be a part of the TekBrands story and to have the opportunity to invest behind this talented management team,” said Drew Caylor, a managing director at WILsquare. “The company has succeeded, not only in engineering great products but also in creating a multi-channel platform and digital ecosystem that engages and inspires the creativity of quilters and crafters.”
“I am thrilled to see WILsquare as the new partner for TekBrands,” said Mr. Nabity. “WILsquare immediately recognized and values what the leadership team has built and shows a clear commitment to continued growth. I’m excited for the future of the organization and know I have found the right partner for the business going forward.” In partnership with WILsquare, Mr. Nabity will continue with the company as a member of its board of directors.
WILsquare invests in businesses that are located in the Midwest and South that have EBITDA of $3 million to $10 million. Sectors of interest include business services, technology infrastructure and services, value-added distribution, niche manufacturing, and internet and catalog-based enterprises.
“The Midwestern values and distinct culture of continuous improvement at TekBrands resonate strongly with us,” said Andrew Scharf, a director at WILsquare. “We look forward to preserving and expanding upon the legacy that Steve and the management team have built over more than three decades.”
In July 2019, after a quick three months of fundraising, WILsquare held a final and above target closing of WILsquare Capital Partners Fund II LP with total capital commitments of $190 million.
TekBrands is the third platform investment for WILsquare’s second fund and is the third investment for WILsquare this year. The two earlier 2021 transactions were the April add-on acquisition by Crown Products (acquired by WILsquare in November 2019) of Tri-State Wholesale Flooring, a South Dakota-based distributor of flooring products; and the September buy of Rock Energy Systems, a Wisconsin-based provider of heating and cooling equipment.
© 2021 Private Equity Professional | December 16, 2021
