Key Takeaways
- • Paradigm Equity Partners, a Los Angeles-based private equity firm focused on corporate divestitures and operationally focused situations, announced the successful acquisition of STI Fabrics, according to a Business Wire release.
- • STI Fabrics, founded in 1964 and headquartered in Kings Mountain, North Carolina, is described as a leading American manufacturer of woven upholstery and performance fabrics serving furniture manufacturers, retailers and designers.
- • Paradigm plans to drive growth through manufacturing efficiency, commercial execution, product development, and expansion in outdoor and designer channels, and is open to complementary acquisitions.
- • The release does not disclose the purchase price or other deal financial terms.
Summary
STI, founded in 1964 and headquartered in Kings Mountain, North Carolina, designs, weaves and finishes fabrics for furniture manufacturers, retailers and interior designers. Its portfolio includes Revolution Performance Fabrics, which the company markets as durable, stain-resistant and easy-to-clean fabrics made without PFAS chemicals, and Brentwood Textiles, which targets customers seeking distinctive designs and textures. The company cites integrated domestic weaving and finishing capabilities as a basis for responsive service and reliable delivery across indoor and outdoor applications.
Zelinsky said STI has built deep customer relationships, a skilled workforce and a differentiated position in American textile manufacturing, and that the firm sees a substantial opportunity to strengthen operations, invest in the business and expand STI's reach across customers and end markets. He described Paradigm's approach as combining transaction execution with active post-closing support, working with management to translate the investment plan into operating results.
Per the release, Paradigm intends to support STI's next phase of growth through manufacturing efficiency improvements, commercial execution, continued product development and expansion in outdoor and designer channels. The firm also sees opportunities for complementary acquisitions that would broaden STI's capabilities and customer reach. Honigman LLP served as legal advisor to Paradigm. The release does not disclose the transaction value.
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