Guardian Capital Partners has acquired Sure Fit Inc., a New York-based maker of slipcovers and related accessories. Argosy Private Equity and existing Sure Fit senior lender Wells Fargo Business Credit provided additional financing. No pricing terms were disclosed.
Sure Fit Inc., the nation’s leading provider of ready-made slipcovers and related accessories, today announced that Guardian Capital Partners (GCP), a Philadelphia, PA based private equity firm that invests in middle market companies, has acquired the business. Terms were not disclosed.
Hugh R. Rovit, CEO of Sure Fit, said: “We are very pleased to have established a partnership with GCP and are looking forward to working with them to continue Sure Fit’s growth in order to maintain our place as category captain. The Company has just completed its most profitable year, successfully executing its strategy in a very challenging retail environment, and the company is well positioned to continue its strong performance. Together with Guardian’s guidance and resources, we will be able to accelerate our initiatives in product, customer and channel expansion as well as continued branding opportunities for the Sure Fit® name.”
Scott D. Evans, Managing Partner of GCP, said: “We are impressed with the company’s accomplishments and with its potential for future growth. Under the leadership of Hugh and his team, Sure Fit has successfully repositioned its products as affordable and practical solutions to higher priced home decorating alternatives, such as buying new furniture or reupholstering. This approach has connected with consumers and has made the product even more relevant in today’s retail environment.”
Wells Fargo Business Credit, the company’s senior bank lender since September 2008, and Argosy Private Equity, a middle market mezzanine lender and minority equity investor, provided additional financing for the transaction. With a well-capitalized balance sheet and larger credit facility, Sure Fit now has the financial resources to take advantage of the many growth opportunities identified by Rovit and his team.
Sure Fit’s success owes much to its positioning of the category and its own brand as providing an economical, visually appealing and easy-to-install solution for redecorating and furniture protection. Slipcovers have traditionally been used by consumers to cover and protect upholstered furniture from damage. Under Sure Fit’s lead, slipcovers are increasingly used for fashion and redecoration.
High quality design has also been an important element in the company’s strategy. Sure Fit focuses its product development on design-based, differentiated slipcovers that deliver performance and functionality. Its machine-washable slipcovers provide a modern, fitted look that is not readily distinguishable from standard upholstery. Sure Fit provides its core products in a selection of rich designs, fabrics, and pattern collections, many of which are protected by patents, trademarks or copyrights.
Peter H. Haabestad, Managing Partner of GCP, added: “Sure Fit has developed a balanced platform of brands, channels, and price points, and has strong access to customers through major national retailers, its own website and other channels. We believe there is excellent potential for the company to reach many consumer segments and substantially increase its growth.”
Mr. Rovit continued: “Our goal in the coming year is to continue our growth and further develop the brand, which has high consumer recognition and is increasingly viewed as the authority in this market segment. Our business infrastructure is highly scalable, so we can take advantage of growth opportunities quickly and efficiently. Most important, we have outstanding people who have worked hard to build the company and will play a vital role in its future success.”
About Sure Fit Inc. (www.surefit.com)
Sure Fit Inc. is the nation’s leading provider of ready-made slipcovers and related accessories. The company’s longstanding position as the premier producer of ready-made slipcovers and coordinating accessories is based on its history of providing value-added decorating solutions in a broad range of styles to meet the needs of the widest range of purchasers.
Sure Fit’s product line includes slipcovers for sofas, loveseats, chairs, oversized chairs, wing chairs, dining room chairs, recliners, ottomans and futons as well as furniture throws and coordinating decorative pillows. Sure Fit provides an attractive and affordable solution for consumers who need to protect furniture from children, pets and general wear or want to quickly and cost-effectively enhance the appearance of a room.
Sure Fit has operations in New York, New York and Allentown, Pennsylvania.
About Guardian Capital Partners (www.guardiancp.com)
Guardian Capital Partners is a private equity firm based in suburban Philadelphia that makes control investments in lower middle market manufacturing and service companies. GCP partners with management teams to provide equity capital to lead leveraged buyouts, recapitalizations and divestitures of family-owned businesses and non-core divisions of larger corporations. The private equity experience and complementary skill sets of the GCP team provide a unique combination of operating and finance capabilities resulting in speed and certainty of execution, operational excellence, and meaningful long term value creation for its portfolio companies. GCP targets companies with revenues between $15 million and $75 million.