Top 40 promotional products supplier SnugZ USA (asi/88060) said Thursday that it has been recapitalized by Tower Arch Capital. Terms of the deal weren’t released, but West Jordan, UT-based SnugZ said the recapitalization has occurred in partnership with its President/CEO Brandon Mackay.

Speaking to Counselor, Mackay said that Tower Arch is now the majority owner of SnugZ. He said the recapitalization will help fuel everything from potential acquisitions to product line expansion.

In a statement, Mackay said the recapitalization will help fuel everything from potential acquisitions to product line expansion.

Brandon Mackay, SnugZ USA

“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,” said Mackay, who won Counselor’s 2019 Bess Cohn Humanitarian of the Year Award. “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.”

Particularly addressing potential acquisitions, Mackay told Counselor: “We’re looking to scale and looking for potential partners that have interest in growing while doing what they love every day.”

David Topham, a partner at Tower Arch, said the private equity firm believes that SnugZ is a sound investment.

“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,” Topham said. “This next chapter of growth will be very exciting as we continue to enhance SnugZ’s excellent design, delivery and customer service offerings.”

Based in Draper, UT, Tower Arch Capital is a lower-middle market private equity firm that reportedly has more than $700 million in assets under management. According to the company website, the firm’s portfolio is diverse, including companies in industries such as telecommunications, drilling, staffing services and more.

“We had more than10 firms approach SnugZ USA, but Tower Arch saw our vision and passion to be unique,” Mackay told Counselor.

With reported 2018 North American promotional product revenue of $50.7 million, SnugZ ranked 35th on Counselor’s latest list of the largest suppliers in the industry. The firm’s five-year average annual growth rate is 10%. “Sales are up for 2019, and if all goes well in the next 60 days, we’ll have our largest year in sales dollars and percentage growth,” Mackay told Counselor.