Toronto, Ontario – TorQuest Partners ("TorQuest"), a leading Canadian-based manager of private equity funds, today announced the purchase of Spinrite LP ("Spinrite" or the "Company"), the largest consumer craft yarn company in North America. Alongside TorQuest, senior members of management will invest in the Company. No financial terms were disclosed.
Established in 1952, Spinrite is well known to the hobby market for its Patons, Bernat, Lily, Peaches & Creme, Caron and Phentex brands, which are sold through mass merchants, craft stores, and independent specialty stores. Spinrite markets approximately 4,000 SKUs across more than 100 product families, possesses the most diversified craft yarn manufacturing operation in North America, and is recognized as a market leader in new product development.
Daniel Sonshine, a Partner at TorQuest Partners, said: "We are proud to add to our portfolio another Canadian business with a long track record of entrepreneurial spirit and success. We are impressed by the achievements of Spinrite's management team – including the implementation of a best-in-class design center and marketing team, in combination with a low-cost and efficient manufacturing and distribution platform – and look forward to partnering with this industry-leading group."
"Spinrite aims to provide inspirational content along with high-quality, high-value yarn products to enable the craft enthusiast to create the unique and exciting projects they desire," said Ryan Newell, CEO of Spinrite. "We are pleased that strong relationships with our retailer customers have allowed us to effectively interface with our end consumer in order to support and share in our retailer customers' growth. We continue to see unique opportunities for the Company and are eager to pursue these initiatives along with our retailer partners and, now, TorQuest."
Eric Berke, Managing Partner at TorQuest added: "Spinrite is the fifth platform investment for TorQuest Partners Fund III and builds on our strategy of partnering with strong management teams to invest in and build great Canadian businesses. We look forward to working with Ryan and his team."
There will be no changes to the Company's day-to-day operations as a result of this transaction and management and the new Board of Directors remain firmly committed to continuing to support the Listowel community.
About Spinrite LP
Spinrite is the largest producer and marketer of craft yarn in North America. Established in 1952, Spinrite is well known for its Patons, Bernat, Lily, Peaches & Creme, Caron and Phentex brands, which are sold through mass merchants, craft stores, and independent specialty stores. Spinrite also supports its market with patterns that provide customers with creative ideas for knitted products. Spinrite has more than 500 employees across its fully integrated manufacturing and distribution centers in Listowel, Ontario and Washington, North Carolina. For more information about Spinrite, visit www.yarnspirations.com.
About TorQuest Partners
Founded in 2002, TorQuest Partners is a leading Canadian-based manager of private equity funds. TorQuest seeks to pursue investments in North American middle market companies, with the goal of building value in partnership with management teams. With more than C$1 billion of equity capital under management, TorQuest is currently investing from TorQuest Partners Fund III, a $535 million fund that closed in September 2013. Spinrite will be the fifth investment of TorQuest Fund III.