Harney Partners acts as financial advisor to commercial printer
Harney Partners, a corporate turnaround and restructuring advisory firm, is pleased to announce the successful sale of Wisconsin-based catalog printer Arandell Corporation to an investment group led by a newly formed affiliate of Saothair Capital Partners for cash and other consideration totaling more than $31 million. Harney Partners served as financial advisor to Arandell prior to and during the Chapter 11 process and the sale transaction that closed on December 4, 2020.
Founded in 1922 and based in Menomonee Falls, WI, Arandell is a U.S. leader in high-quality catalog and brochure printing, mailing and logistics, with a strategic focus on upscale retailers and well-recognized brands throughout the United States. With over 500 employees, Arandell’s operations include a state-of-the-art prepress department, one of the industry’s most efficient heat-set web pressrooms, and a bindery that includes saddle stitching, perfect binding and co-mailing capabilities.
Saothair is a private investment firm focused exclusively on investing in lower-middle market manufacturing and industrial businesses facing unique financial or operational challenges.
Arandell’s decision to go through the Chapter 11 process was driven in large part by industry changes resulting from the COVID-19 pandemic and a desire to reduce debt and better position itself to compete and deliver exceptional products and services. The decision followed a comprehensive evaluation of the Company’s strategic options, undertaken with the assistance of Harney Partners, along with the Company’s investment banker Promontory Point Capital, and the Company’s restructuring counsel Steinhilber Swanson LLP, and Young Conaway Stargatt & Taylor LLP.
Prior to the bankruptcy filing in the U.S. Bankruptcy Court of Delaware in August, 2020, Harney Partners and Steinhilber Swanson negotiated a $31.5 million debtor-in-possession (DIP) financing arrangement on behalf of Arandell, including a $7.5 million revolving inventory loan with incumbent senior lenders and a $24 million accounts receivable factoring facility from LSQ Funding Group, L.C.
Harney Partners also renegotiated the terms of Arandell’s main headquarters and printing facility lease, adding significant value to the post-bankruptcy company.
Promontory Point Capital and Harney Partners worked jointly to identify a buyer and negotiate the sale transaction, which was approved by the Bankruptcy Court on November 25, 2020.
“We were pleased to find the best solution for Arandell that will enable them to continue providing outstanding print and digital media services and preserve more than 500 jobs,” said Jim Keane, Managing Director at Harney Partners, “Arandell emerged from the bankruptcy process in less than four months—a testament to the company’s strong fundamentals. We were fortunate to work with a great team of collaborative advisors and stakeholders to facilitate a successful outcome.”
Along with Saothair, the investor group included Ocean Avenue Capital Partners and Farragut Capital Partners. Senior financing was provided by Siena Lending Group LLC (as Agent and Lender) and Great Rock Capital Partners LLC (as Lender). Jenner & Block provided legal counsel to the investor group.
The following team of professionals represented Arandell:
Financial Advisors: Jim Harney, Jim Keane, Mac Rowland and Wade Horst of Harney Partners
Attorneys: Jim Sweet, Michael Richman, Virginia George and Lisa Eddy of Steinhilber Swanson, LLP; Michael Nestor, Andrew Magaziner, and Matthew Milana of Young Conaway Stargatt & Taylor LLP
Investment Bankers: Bill Penkwitz of Promontory Point Capital