Archway Buys Supply Chain Management Biz

Archway, a Rogers, Minn.-based BPO company owned by Tailwind Capital Partners and Black Canyon Capital, has acquired the supply chain management unit of Resolve Business Outsourcing Income Fund. No financial terms were disclosed.

PRESS RELEASE
Archway, the leader in marketing operations management and fulfillment services, today announced that it has completed the acquisition of the supply chain management division of Resolve Business Outsourcing Income Fund (TSX:RBO.UN). The addition of the supply chain management division augments Archway’s suite of business-to-business and business-to-consumer fulfillment and promotion services and positions the company as a clear industry leader with an unmatched geographic footprint, breadth of service offerings and expertise across numerous client industry sectors.

“Major brands are streamlining their marketing resources and looking for partners they can count on to perform the work of multiple vendors,” said Mike Moroz, president of Archway. “More importantly, they need to be confident that their partners are going to be in business tomorrow and next year. With this acquisition, we’ve created a company with unsurpassed service capabilities and expertise that through its size delivers the economies of scale that are critical for serving our clients’ needs and delivering results.”

According to Moroz, the economic downturn has been hard on smaller vendors who have lost business due to vendor consolidation and even to large vendors who have been focused on specific industry verticals that have been forced to make major marketing cuts. In an environment where many vendors are under financial pressure, marketers are looking for the stability and experience Archway can offer its customers.

In November 2008, Tailwind Capital Partners and Black Canyon Capital, together with the Archway management team, purchased Archway with the intent of strategically growing the company’s service offerings and geographic footprint to create the most dynamic provider of marketing operations and fulfillment services.

“This acquisition will allow Archway to deliver all of the services the industry is demanding in each of the key geographic areas where businesses and consumers are located,” said Clay Perfall, chief executive officer of Archway. “Archway’s commitment, and that of the company’s investors, to investing in the company’s capabilities and addressing expanding client needs – despite the economy – gives Archway and its clients a significant advantage over the competition.”

As a result of the acquisition, Archway has nearly doubled in size to annual revenues of approximately $200 million, and close to 1,500 employees and 3.5 million square feet of distribution space. The company now has 21 full-service locations, manages two client-owned facilities and has multiple onsite account management locations.

About Archway:

Archway is the leader in marketing operations management, providing marketing execution solutions and complementary business process outsourcing. These solutions include fulfillment services, consumer promotions, rebates, print management, facility management, business intelligence and decision support tools. Each solution is designed to reduce marketing operations costs, improve marketing execution processes, leverage emerging technologies and most importantly help improve the brand experience at every touch point of their clients’ marketing campaigns. Following the acquisition of the supply chain management division of Resolve on July 1, 2009, Archway has 1,500 employees and 3.5 million sq. ft. of distribution space in 13 major metropolitan areas in North America. For more information visit www.archway.com.

About Tailwind:

Tailwind Capital is a private equity firm investing in growth-oriented middle-market companies in the healthcare, business services and media/communications sectors. Tailwind partners with management teams to build businesses through organic growth, strategic acquisition, and operational improvement. The firm currently has over $1 billion under management. For more information, visit www.tailwindcapital.com.

About Black Canyon Capital:

Black Canyon Capital is a Los Angeles based private capital firm focused on investing in control and non-control private equity and structured debt securities. Black Canyon is partnered with Canyon Capital Advisors, one of the largest multi-strategy asset managers in the United States. Since its inception in September 2004, Black Canyon has completed more than $1 billion of equity and debt investments. More information can be found at www.blackcanyoncapital.com.