Saothair Capital Partners Completes the Acquisition of Arandell Corporation

Saothair Capital Partners, LLC ("Saothair"), a private equity firm focused exclusively on investing in lower-middle market manufacturing and industrial companies facing unique operational and financial challenges, announced it has acquired the business and assets of Arandell Corporation ("Arandell") through a newly-formed affiliate. Saothair completed the transaction after partnering with existing lender Farragut Capital Partners to be named stalking-horse bidder pursuant to a 363 sale of assets under Chapter 11 of the U.S. Bankruptcy Code.

Founded in 1922 and based in Menomonee Falls, WI, Arandell (www.arandell.com) is one of the nation's leading providers of high-quality catalog and brochure printing, mailing and logistics, with a strategic focus on upscale retailers and well-recognized brands throughout the United States. With approximately 530 employees, Arandell's operations include a state-of-the-art prepress department, one of the industry's most efficient heat-set web pressrooms, and a bindery that includes saddle stitching, perfect binding and co-mailing capabilities. Bradley Hoffman will continue to serve as President and Chief Executive Officer.

Kevin Madden, Co-founder and Managing Partner of Saothair, said, "Arandell is exactly the sort of business Saothair was created to invest in – a fundamentally strong company that is highly valued by its customers and a leader in its industry, but one that has been held back by an over-leveraged balance sheet and beset by the historic, unprecedented challenges of the COVID-19 pandemic. We are grateful for the support of the International Brotherhood of Teamsters and Arandell's talented workforce for their confidence in us to be stewards in the next chapter of the company's success."

Richard Lozyniak, Co-founder and Operating Partner of Saothair, said, "We are excited to be partnering with Mr. Hoffman and his leadership team to invest behind Arandell's further growth as a leader in the U.S. catalog printing industry. We see tremendous opportunity to take what is already a high-quality printer and, by bringing the necessary financial resources, create an even more enduringly competitive operation." 

"Saothair's investment is a testament to the overall strength of our business model and market position," said Mr. Hoffman. "We're excited to have completed the restructuring process in a timely fashion and to begin working with Kevin and Rich to move forward as a company, continuing our recent growth into 2021 and beyond."

Saothair invested in partnership with Ocean Avenue Capital Partners. Financing was provided by Siena Lending Group LLC (as Agent and Lender) and Great Rock Capital Partners LLC (as Lender), with Jenner & Block providing legal counsel.

About Saothair Capital Partners

Saothair is a private investment firm focused exclusively on investing in lower-middle market manufacturing and industrial businesses facing unique financial or operational challenges.  Saothair makes controlling equity investments in companies across a wide range of industries, including paper & packaging, plastics, metals processing, automotive, building products, healthcare-related products, food & beverage and other manufacturing. Saothair works in partnership with each key stakeholder invested in the long-term success of the business.  For more information please see www.saothair.com.