As we reflect on the achievements of 2024, ArchStar Capital proudly looks back on a year marked by strategic growth, impactful investments, and industry recognition. We’ve had a busy year, highlighted by completing three key acquisitions, expanding our portfolio, and further cementing our reputation as a leader in the lower middle-market private equity space. Our focus on partnering with founder-owned businesses, particularly those in manufacturing, value-added distribution, and business services, has propelled us to achieve significant milestones and broaden our impact in a short period of time.
Growing Dental and Orthodontic Practices: Tess Oral Health Acquisition
In May 2024, ArchStar completed the acquisition of Tess Oral Health, a leading manufacturer of custom-imprinted toothbrushes and dental products based in Eau Claire, Wisconsin. By leveraging ArchStar’s operational expertise and strategic resources, we aimed to support Tess Oral Health in expanding its product offerings and market share in the dental and orthodontic sectors.
“We’ve been impressed by Tess Oral Health’s dedication to quality and innovation in the dental space,” said Jacob Sturdy, Co-Founder of ArchStar Capital. “Our investment will not only help expand their product offerings but will also allow us to optimize their operations and bring in the resources necessary for further market penetration.”
Rob Conner, CEO of Tess Oral Health, shared his excitement about the collaboration: “ArchStar’s background and approach as former business owners set them apart. They understand the complexities of scaling a company and are committed to helping us grow in a way that aligns with our vision. We’re thrilled about the opportunities this partnership brings, and we look forward to the next chapter together.”
Establishing Our Footprint in Sustainable Home Products: Attic Breeze Acquisition
In June 2024, ArchStar Capital proudly acquired Attic Breeze, a leading manufacturer of solar-powered attic fans and accessories headquartered in Gatesville, Texas. This acquisition established ArchStar’s position in the sustainable home products sector, an industry poised for continued growth as consumers and businesses alike embrace more eco-friendly solutions.
“Attic Breeze has been at the forefront of providing energy-efficient solutions for homes and businesses,” said Tom Mingo, Co-Founder of ArchStar Capital. “We’re excited to leverage our resources and industry expertise to accelerate their growth and expand their market reach. Our long-term vision is to support Attic Breeze’s continued innovation while enhancing their impact on the energy efficiency market.”
Travis Hipp, Founder and CEO of Attic Breeze, expressed his enthusiasm about the partnership: “Partnering with ArchStar made perfect sense for us. Their deep understanding of the challenges I’ve faced as a business owner, along with their experience in driving operational excellence, gave us confidence that we can scale and build upon our success. We’re looking forward to the growth opportunities this partnership will bring.”
Attic Breeze’s commitment to quality and innovation perfectly aligns with ArchStar’s mission to support businesses with strong growth potential in niche markets.
Advancing Custom Protective Containers: Packaging Solutions Incorporated (PSI) Acquisition
Adding to our portfolio of strategic investments, ArchStar Capital solidified its third deal of the year in October 2024 with the acquisition of Packaging Solutions Incorporated, headquartered in Baltimore, Maryland. PSI is a premier provider of customized hard-plastic packaging containers, serving a diverse range of industries including military, defense, medical, and commercial sectors. The acquisition of PSI aligns with ArchStar’s strategy of investing in high-growth, niche manufacturing businesses.
“PSI’s innovative approach to packaging solutions, particularly in rugged, high-value applications, made them an ideal fit for ArchStar,” said Peter Villhard, Co-Founder of ArchStar Capital. “We’re excited to help PSI expand its reach, particularly as the demand for specialized packaging in military and aerospace applications continues to grow.”
Mark Rolfes, Co-President of PSI, highlighted the alignment between the two companies: “ArchStar’s team brings a wealth of operational expertise and a track record of success in scaling businesses. This partnership gives us the resources to enhance our capabilities and expand our footprint across key sectors. We’re looking forward to working closely with ArchStar to drive PSI’s next phase of growth.”
Celebrating Industry Recognition: ArchStar Wins 2024 Dealmakers Award
In October 2024, ArchStar Capital was honored with a prestigious 2024 Dealmakers Award by Smart Business Network at the Minneapolis Dealmakers Conference. This recognition celebrates excellence in mergers, acquisitions, and private equity deals, highlighting ArchStar’s impactful contributions to the private equity landscape. The award underscores our team’s dedication, expertise, and success in identifying and executing value-creating transactions that drive growth across various sectors.
“We are deeply honored to receive the Dealmakers Award,” said Tom Mingo, Co-Founder of ArchStar Capital. “This award is a testament to the hard work and dedication of our team. It reflects our ability to identify strong growth potential in lower middle-market businesses and partner with them to achieve sustainable success.”
Fred Koury, President & CEO of Smart Business Network, added, “ArchStar Capital’s success in the private equity space and their ability to execute high-impact acquisitions in the lower middle market is a true testament to their expertise and strategic vision. We’re thrilled to honor them for their achievements and look forward to seeing how they continue to grow and create value.”
ArchStar’s Unique Value Proposition for Portfolio Companies
At ArchStar Capital, our success is driven by a unique blend of founder-based operating experience and deep private equity domain knowledge. Led by seasoned partners Peter Villhard, Jacob Sturdy, Tom Mingo, and Scott Moore, our team brings extensive expertise in manufacturing, supply chain management, sales, marketing, and strategic growth best practices because half of our founding team were former owners/operators themselves. This dual perspective enables us to understand the challenges keeping owners awake at night and to provide thought leadership, broad networks, and to provide thought leadership, broad networks, and best-in-class resources that protect and expand upon the strong legacies built by businesses.
As Tom Mingo noted, “At ArchStar, we view every investment as a partnership. Our experience as former business owners allows us to bring a unique perspective to the table, and our goal is always to create value that benefits both the company and our investors. We’re proud of the progress we’ve made in 2024 and look forward to what’s to come in the years ahead.”
Looking Ahead to 2025
ArchStar’s rapid pace of investment and success in 2024 demonstrate the firm’s growing influence in the private equity landscape. Looking ahead to 2025, ArchStar Capital remains committed to pursuing opportunities that drive sustainable growth, create value for our portfolio companies, and deliver exceptional returns for our investors. The firm’s focus on partnering with founder-led businesses, along with its ability to provide tailored support and patient capital, makes ArchStar a trusted partner for companies looking to scale and grow.
