Investcorp acquires Archway Marketing Services, Inc.

9 Jul 2012

Investcorp, the alternative investments specialist, announced today its acquisition of Rogers, Minnesota-based Archway Marketing Services, Inc., a provider of marketing logistics and fulfilment services in North America, for approximately $300 million, which represented less than 10x EBITDA.

Archway utilizes a sophisticated technology platform to execute sales and marketing programs by procuring, managing and distributing marketing materials, in-store signage, samples and products on behalf of its large group of Fortune 500 clients. The company operates over four million square feet of warehouse facilities across fourteen major metropolitan areas throughout the United States and Canada. Investcorp will work closely with Archway’s management team to further grow its customer base and consolidate the industry.

“Over the past four years, despite economic headwinds, Archway has more than doubled in size, broadened its service offerings, and emerged a leader in the marketing logistics and fulfilment industry,” said Chris McCollum, Managing Director at Investcorp. “We look forward to partnering with Archway to continue this strong growth and expansion of its leadership position in this growing industry.”

Archway was acquired from an investor group led by Tailwind Capital, Black Canyon Capital and members of the management team.

“Investcorp’s operational and financial resources are tremendous assets to Archway as we seek to build on our success – increase our scale, broaden our service offerings and become more valuable to the clients we serve,” said Clay Perfall, CEO of Archway. “We’re excited by the opportunity to continue our progress with the support and sponsorship of Investcorp.”

GE Capital Markets, Inc. and ING Capital LLC served as Joint Lead Arrangers and Administrative Agents of the senior debt financing. The mezzanine financing was provided by Audax Group and Oaktree Capital Management, L.P.

Investcorp was advised by PricewaterhouseCoopers, Gibson Dunn & Crutcher and K-2 Partners. Piper Jaffray & Co. also acted as financial advisor to Investcorp. Robert W. Baird & Co. Incorporated acted as sellside advisor for Tailwind Capital and Black Canyon Capital.