SnugZ USA Announces Recapitalization To Expand, Strengthen The Business
West Jordan, Utah-based supplier SnugZ USA, LLC (PPAI 112982, S10) has undertaken a recapitalization through Tower Arch Capital, a middle-market private equity firm in Salt Lake City, in partnership with SnugZ’s President and CEO Brandon Mackay, MAS. The news was first announced this morning in a PPB Newslink Breaking News alert. Financial details of the deal were not released.
“SnugZ has grown to become a leading player in the promotional products industry, starting with lanyards and identification products and expanding into personal care and premium gifting,” says Mackay. “We’re proud of our growth over the past 30 years and believe this partnership with Tower Arch Capital will further strengthen our ability to innovate new products, expand into additional product segments, and target and acquire existing promotional product supplier businesses to better serve our loyal customers.”
David Topham, a partner at Tower Arch Capital, adds, “We are thrilled to partner with Brandon and his team. SnugZ’s innovative manufacturing and forward-thinking culture have advanced the promotional product industry and what it means to deliver high quality and creative products. This next chapter of growth will be very exciting as we continue to enhance SnugZ’s excellent design, delivery, and customer service offerings.”
Mackay spoke to PPB Newslink about what the recapitalization means for the company and where it’s going next. In the transaction, Tower Arch Capital becomes majority owner of SnugZ USA. This is the supplier’s first move outside Mackay’s personal investment. He says, “This is new territory but I’m excited for sure. We had more than 10 firms approach SnugZ USA and Tower Arch saw our vision and passion to be unique.”
According to Mackay, the recapitalization allows the company to put its efforts into acquiring other companies and bringing in inventory and equipment to make its vision a reality. “Our plans include expanding the categories we already service but are highly motivated entering into some of the larger industry segments where the majority of the sales reside,” he says. “As far as acquisitions, we’re looking to scale and for partners who have great design, function and an appetite to go to the next level inside a platform like SnugZ. We are looking for potential partners that have interest in growing while doing what they love every day.”
Mackay adds that going forward, customers will not notice any immediate changes. He remains CEO and all staff remains at their current positions.