MINNEAPOLIS & WEST PALM BEACH, Fla. — July 5, 2022 — Norwest Equity Partners (NEP), a middle market investment firm founded in 1961, has made a significant investment in QTI Fibers (QTI), a vertically integrated designer and manufacturer of highly technical fibers, fabrics, and coatings for consumer, healthcare, and industrial applications. This transaction closed on July 1, 2022, and financial terms were not disclosed.
Founded in 1922, QTI is comprised of three market-leading brands, Twitchell Technical Products, Quantum Materials, and Infinity Woven Products, with products serving a diversified customer base that includes office furniture manufacturers, architectural products providers, outdoor living companies, marine and RV manufacturers, healthcare, and other industrial businesses. NEP’s investment capital will help further position QTI for significant product, customer, and end market expansion.
Tim DeVries, NEP managing partner, said, “We are thrilled to welcome QTI to our family of portfolio companies. QTI is poised for continued growth, and we look forward to working closely with the entire team to create long-term, sustainable value together.”
NEP brings deep industry and business model experience to QTI through current and past portfolio company partnerships, including Arteriors, Minnesota Rubber and Plastics, Momentum Group, Stanton Carpet Corp., and Thibaut. Additionally, NEP is partnering with two seasoned executives, Allen Smith and Roger Arciniega, to lead QTI as CEO and Non-Executive Chairman, respectively.
Smith most recently joined from a senior executive position at Elevate Textiles, a global fabric and sewing thread provider, and Arciniega served as CEO of Momentum Group, a former NEP portfolio company that provides commercial fabrics and wallcoverings. While at Momentum, Arciniega and NEP worked together to more than double EBITDA and significantly grow revenue over the course of NEP’s investment. Additionally, Arciniega has served on the board of other NEP portfolio companies, including Stanton Carpet and Thibaut.
“Given our familiarity with QTI’s business model and end markets, coupled with the resources that we’ve united with the company, our team is the perfect investment partner for QTI as it embarks upon its next chapter of growth,” said Jason Sondell, NEP managing director.
Smith and Arciniega will partner with the QTI’s existing leadership team which is based in Colfax, N.C., and Dothan, Ala.
“With over 100 years of providing innovative products, brand excellence, and custom solutions, QTI has achieved immense success and pioneered many technical product advances. This is an exciting time for us,” Smith shared. Arciniega said, “NEP was a true partner for us at Momentum, providing the right balance of challenge, encouragement, and support, empowering us to achieve above and beyond expectations. Similarly, QTI is poised for success with NEP by their side, and I look forward to being part of yet another NEP success story.”
Lincoln International advised QTI on the transaction; Winston & Strawn was legal advisor to NEP; and BMO Capital Markets provided senior debt financing.
Posted: July 5, 2022
Source: Norwest Equity Partners (“NEP”)
