The Business

Handi Quilter, Inc. (www.handiquilter.com) is a Salt Lake City, Utah-based developer and manufacturer of long-arm quilting machines, frames and accessories for the consumer quilting market. The company’s long-arm quilting machines are used to stitch the three layers (i.e., top, batting and back) of a quilt together in an artistic and decorative fashion. Handi Quilter is widely recognized as the leader in the evolution of high-quality quilting machines, innovating new products that set the standard for quality, ease of use and functionality. The company’s products are sold worldwide in over 700 independent retail locations.

The Industry

Handi Quilter participates in the $3+ billion quilting market. Demand for the company’s products has been influenced by a number of favorable market dynamics, including a large and growing quilter population, increased spending on quilting and an aging U.S. female population. The quilting market is fragmented and ripe for consolidation – consisting of many small suppliers of quilting machines, frames, accessories, thread and fabric.

The Process

Prestwick Partners initiated this transaction and acted as the exclusive financial advisor to Handi Quilter, Inc., and private equity groups Hanover Partners and Tuckerman Capital. Prestwick designed an M&A process, prepared marketing materials, evaluated acquisition proposals and negotiated the transaction with High Road Capital Partners, a New York-based private equity group. Prestwick’s process included both domestic and international strategic acquirers as well as private equity groups.