Integrated Textile Systems, Inc.

Monroe, North Carolina

has been acquired by

Armor Holdings, Inc.

Jacksonville, Florida

Capital Alliance Corporation initiated
this transaction and assisted in its closing.

Integrated Textile Systems, Inc.

Integrated Textile Systems, Inc. manufactured innovative high strength fibers for use in ballistic protection, dental floss, climbing ropes, and numerous other applications. With the aid of Capital Alliance, Integrated Textile sold its business to Armor Holdings, Inc., a publicly traded manufacturer of military, law enforcement, and security equipment.

Integrated Textile invested over $20 million developing its technology while securing ten worldwide patents. Following initial production issues, the shareholders required substantial capital resources to install high volume production lines, without which the business would struggle to realize its potential profitability. When the company sought an acquirer, it called upon Capital Alliance.

Like  many companies that focus on research and development, Integrated Textile operated at a significant loss, confined by prototype production lines and low volume contracts from its customers. The task for Capital Alliance was to feature the growth potential of the new technology, while quantifying near-term revenue opportunities as a basis for valuation. Further complicating a sale was Integrated Textile’s sizeable corporate debt, along with the complexity of producing its patented technology in high volume. Following an extensive search, numerous presentations, and several acquisition offers, Capital Alliance negotiated a deal with the perfect match, Armor Holdings, a company with the appropriate manufacturing expertise and expansion capital to turn prototype into profit.

Capital Alliance successfully negotiated cash at closing, the liquidation of shareholder debt, and a long-term multi-phase earnout program that included a $12 million commitment from Armor Holdings to increase the company’s production capacity.