Norwood Issues Press Release on Chapter 11 Filing
Indianapolis-based Norwood Promotional Products announced today it has entered into an agreement to sell the company to Aurora Resurgence, an affiliate of Aurora Capital Group, a private equity firm managing over $2.0 billion. This transaction is the culmination of the refinancing and restructuring efforts that the Company has been working on since 2006. The purchase price includes cash and the assumption of certain liabilities.
The current management team, including CEO Paul Lage, will continue to lead the Company once the sale closes. The team has more than 70 years of experience in the promotional products industry and is responsible for executing the plan to strengthen Norwood’s balance sheet.
“This sale will result in a stronger, more flexible, Norwood,” said Lage. “It’s a major step to cementing the Company’s stature atop the industry.”
“We are pleased to have Aurora as our partner for the long term,” added Lage. “Their vision, values and strategies are aligned with Norwood’s direction. Their tremendous experience and knowledge of the industry will immediately benefit our customers and enhance our opportunities going forward.”
Aurora Resurgence invests in middle market companies across many sectors, including manufacturing and distribution. Aurora’s knowledge and experience in the promotional products industry makes it the ideal partner for Norwood and is a clear sign to the industry that Norwood’s business remains robust.
The sale will be completed through a proceeding in a Chapter 11 case, which Norwood commenced today with a targeted closing by the end of June. Competitive offers may be submitted pursuant to bidding procedures as established for the case.
”We will continue to purchase inventory and take and ship orders under normal schedules, so it is business as usual. Customers will receive the same high quality products and prompt service to which they are accustomed,” says Lage.
Norwood has secured an extension of its existing revolving credit line to avoid any disruption to the business. Additionally, Aurora Resurgence has secured financing in support of the sale from a unit of Wells Fargo & Company (NYSE: WFC).
“Norwood has come a long way in a relatively short period of time,” Lage said. “Every one of our associates should be proud of the Company’s achievements and confident in Norwood’s future.”
Norwood Promotional Products is an industry leading supplier of imprinted promotional products. The company offers nearly 5,000 products and is a market leader in several of the industry’s major product categories. Norwood also offers hundreds of products on 24-Hour service at no extra charge.
For more information on Norwood, visit www.norwood.com.