Highlander Partners has sold QTI Fibers, a maker of specialty fabrics and coated materials, to Norwest Equity.
QTI is a vertically integrated designer and manufacturer of a range of technical fibers and fabrics that are sold under the Quantum, Twitchell and Infinity brands. The company’s products include suspension seating fabric, shades and screens, coatings and non-woven laminates, woven flooring, and outdoor design fabrics that are used in high-end consumer and industrial applications.
QTI’s more than 1,000 global customers are active in the manufacturing of office furniture, exterior and interior window shades, window screens, awnings, canopies, wall, and floor coverings. QTI’s coating products are used in a variety of applications including as absorbent and containment materials used in industrial absorbent rugs, absorbent track mats, paint drop cloth materials, shipping and equipment covers, and fracking liner fabric.
Highlander first invested in QTI through the buy of Twitchell in 2015, which was followed by the acquisitions of Infinity in 2016 and Quantum in 2017. QTI was founded in 1922 and has operating facilities in Dothan, Alabama, and Colfax, North Carolina with a combined 550,000 square feet.
“We are thrilled to welcome QTI to our family of portfolio companies. QTI is poised for continued growth, and we look forward to working closely with the entire team to create long-term, sustainable value together,” said Tim DeVries, a managing partner at NEP.
To acquire QTI, NEP is partnering with two industry executives, new CEO Allen Smith, and new Non-Executive Chairman Roger Arciniega. Mr. Smith joins QTI from Elevate Textiles, a North Carolina-based fabric and sewing thread provider. Mr. Arciniega has previously the CEO of Momentum Group, a former NEP portfolio company that provides commercial fabrics and wallcoverings. Momentum was sold to The Riverside Company in April 2016. Mr. Arciniega has served on the board of other NEP portfolio companies, including Stanton Carpet and wallpaper maker Thibaut.
“NEP was a true partner for us at Momentum, providing the right balance of challenge, encouragement, and support, empowering us to achieve above and beyond expectations. Similarly, QTI is poised for success with NEP by their side, and I look forward to being part of yet another NEP success story,” said Mr. Arciniega.
“Given our familiarity with QTI’s business model and end markets, coupled with the resources that we’ve united with the company, our team is the perfect investment partner for QTI as it embarks upon its next chapter of growth,” said Jason Sondell, a managing director at NEP.
“We are pleased with the type of business that QTI has evolved into and with the outcome of this investment,” said Jeff Hull, the president and CEO of Highlander. “We believe QTI is now a leader in high-quality technical fibers and very well-positioned for continued growth and success going forward. NEP is an ideal partner to take the business to another level and we are very happy to see the management team partner with them for future successes.”
Highlander makes investments in middle-market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include manufacturing, consumer products, industrial goods, automotive accessories, packaging, food and beverage, and specialty chemicals. The firm has over $2 billion in assets under management and is based in Dallas.
NEP makes equity investments of $30 million to $250 million in companies that have more than $10 million in EBITDA. Sectors of interest include agriculture, business services, consumer, distribution, industrials, energy, and healthcare. NEP was founded in 1961 and is headquartered in Minneapolis with an additional office in Palm Beach.
BMO Capital Markets provided senior debt financing for the buy of QTI. Lincoln International was the financial advisor to QTI.
© 2022 Private Equity Professional | July 12, 2022
