Arandell sale to private equity firm approved by court

Last updated on December 8th, 2020 at 10:37 am

A bankruptcy judge has approved the sale of Arandell Holdings Inc. to a group led by Saothair Capital Partners, a private equity firm based in the Philadelphia area.

Menomonee Falls-based Arandell, the third largest catalog printer in the U.S., filed for bankruptcy earlier this year as the COVID-19 pandemic and changes in the retail industry led to customers pushing out their payments, closing stores or filing for bankruptcy themselves.

Arandell ultimately secured a $31.3 million stalking horse bid from Arandell Acquisition Co., an entity created by Saothair. Washington D.C.-based Farragut Capital Partners, a junior secured creditor of Arandell, and Arandell president Brad Hoffman are also minority shareholders in the new entity.

With no new qualifying bids, a planned auction of the company’s assets was cancelled in mid-November. Last week, a bankruptcy judge approved the sale to AAC.

“Saothair’s investment is a testament to the overall strength of our business model and market position,” Hoffman said. “We’re excited to complete the process and move forward as a company, continuing our recent growth into 2021 and beyond.”

Arandell will continue its operations in Menomonee Falls and plans to emerge from bankruptcy well capitalized with a conservative balance sheet. The company said it has maintained normal operations during bankruptcy, preserved more than 500 jobs, steadily increased revenue growth and is on track to return to pre-COVID-19 revenue growth in 2021.

“Arandell has been able to achieve its market position by having a strong business model, disciplined leadership team, and a focused workforce, all of which makes them a strong partner,” said Kevin Madden, managing partner of Saothair. “Arandell’s ability to maintain its market position amid the pandemic and reorganization process underscores all the positive attributes that make us believe the business is poised to continue its growth trajectory.”

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Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He also spent five years covering manufacturing at BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.

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