Since Archway first appeared on the Inc. 500|5000 list in 2005, its revenues have grown by 240 percent from 2005 through 2011 and Archway has earned increased revenues in each sequential year. With Investcorp’s support, Archway plans to continue its growth momentum and consolidate its leadership position in the industry by further growing its customer base and seeking attractive acquisition targets.
Acquired in July (2012) for approximately $300 million, Archway utilizes a sophisticated technology platform to execute sales and marketing programs by procuring, managing and distributing marketing materials, in-store signage, samples and products on behalf of its large group of Fortune 500 clients. The company operates over four million square feet of warehouse facilities across 14 major metropolitan areas throughout the United States and Canada.
Archway is one of two acquisitions made by Investcorp during the summer with a total transaction value of $550 million. The second acquisition was Esmalglass, a leading global supplier of intermediate products for the ceramics industry. While Investcorp has been investing in leading businesses in Europe for 30 years, Esmalglass marks its first transaction in Spain.
Established in 1978 in Villareal, Spain, Esmalglass produces high quality ceramic glazes and colors, as well as inkjet inks, an innovative and rapidly growing product used to decorate tile surfaces. For the first six months of 2012, Esmalglass’ earnings before tax, interest, depreciation and amortization (“EBTIDA”) grew by 20% compared to 2011. Inkjet has proved to be a major driver of growth with H1 2012 EBITDA exceeding full year 2011 EBITDA.
Esmalglass’ products are sold to more than 450 customers worldwide and the company is experiencing positive sales growth in China, Brazil, India and Middle East. Esmalglass’ global activities are supported by manufacturing and mixing plants in Spain, Brazil, Portugal, Italy, Russia, Indonesia and China, as well as by large design and technical assistance teams in all the major ceramic markets across the world.
“Investcorp continues to find exciting and dynamic US and European companies to invest in despite the economic backdrop. Both Archway and Esmalglass are led by extremely experienced management teams and have witnessed substantial growth over the last few years. We believe that both companies have significant growth prospects due to their unique market positions and we look forward to being part of their next phases of development,” Mohammed Al-Shroogi, Investcorp’s President for Gulf Business said.