Getting back to textiles, Long Point Capital, in partnership with management, has purchased Sunbury Textile Mills.
Based in Sunbury, Pa., and founded in 1954, Sunbury is a former division of LifeStyle Furnishings International. The company designs, weaves and sells decorative Jacquard upholstery fabrics for use by residential and outdoor furniture manufacturers and distributors of fabrics. Sunbury targets the middle to high-end price point segments of the upholstery fabric market and is known in the marketplace for design innovation, quality, customer service and delivery, according to Long Point Capital. Chairman of the Board Hank Truslow III and President Hank Truslow IV lead the Sunbury management team.
For Ira Starr, a managing director with Long Point, Sunbury represents a growth equity investment.
“We’re not looking for acquisitions. I think we’re just really looking to expand the markets that the company is selling into,” he said, adding, “Upholstery fabric tends to be much more stable than the apparel textile industry. It’s not a growth industry, but we bought it off a down year, so we bought it at a multiple of depressed earnings.”
Starr would not disclose how much the investment was or Sunbury’s revenue. However, Long Point normally invests in companies with revenues of $30 million to $200 million, with Ebitda of at least $5 million, in manufacturing, distribution or service companies “that can best utilize the corporate services of a Fortune 500 industrial company.”
“We’ve known the management team for 10 years,” said Starr, a key for the firm in deciding to do this deal, he said.
“And we also had an investment in the upholstery fabric industry in our prior fund, Quaker Fabric, [which we] bought in 1993, and took public in 1994. (We didn’t sell stock till later).” In terms of how much his firm made on this investment, Starr declined comment.
Long Point Capital is a Michigan- and New York-based investment fund. Among its portfolio companies are Atlantic Plywood and Arch Aluminum and Glass.
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