Stout Advised STI Fabrics on Its Sale to Paradigm Equity Partners

Stout has advised STI Fabrics (“STI” or the “Company”) on its sale to Paradigm Equity Partners (“Paradigm”). Stout served as exclusive sell-side financial advisor to STI in connection with the transaction, which closed in October 2026.

Founded in 1964 and headquartered in Kings Mountain, North Carolina, STI is the largest independently owned U.S. manufacturer of upholstery and performance fabrics. The Company operates fully integrated domestic weaving and finishing facilities, providing customers with a broad portfolio of upholstery fabrics for residential, outdoor, and hospitality applications. STI serves a long-tenured customer base of furniture original equipment manufacturers (OEMs), retailers, designers, and other commercial customers.

The Company’s flagship brand, Revolution® Performance Fabrics, is the market leader in PFAS-free woven performance fabrics, complemented by its STI Fabrics and Brentwood Textiles brands. STI differentiates itself through its domestic manufacturing capabilities, established customer relationships, and focus on durable, high-performance fabrics.

Paradigm Equity Partners is a Los Angeles-based private equity firm focused on acquiring corporate divestitures and lower middle-market businesses in the industrials and manufacturing sectors. The firm specializes in complex, time-sensitive transactions and works with portfolio companies to provide capital and operational support. The acquisition provides STI with additional capital and hands-on operational support from a partner experienced in manufacturing businesses, supporting the Company’s plans to invest in its operations, expand its product offering, and enter new markets.

Sean Gibbons, CEO of STI, said the acquisition will provide the Company with investment capital and strategic direction necessary for its continued growth. Gibbons commented, “Since 1964, STI has been a trusted manufacturer and supplier of fabrics to the home furnishings industry. The acquisition will allow STI to expand our product offering; enter new markets; and continue our legacy of developing innovative fabrics for our customers.”

Roman Zelinsky, Founder of Paradigm Equity Partners, commented, “STI has built a strong reputation for domestic manufacturing and product innovation over more than six decades. We look forward to working with Sean and the STI team to support the Company’s next phase of growth. This transaction demonstrates Paradigm’s ability to work collaboratively with sellers and their advisors to navigate challenging deal structures, address transaction-specific obstacles, and successfully execute complex transactions.”

Stout worked closely with the Company’s senior management team and Board of Directors to find a partner suited to a family-owned business with a 60-year operating history. Gibbons added, “Stout ran a thorough, well-executed sales process. The team understood the complexities of selling a family business and what we wanted to achieve, and delivered an excellent outcome for the Company and its employees.”

Luis A. Pillich, Managing Director in Stout’s Investment Banking Group, shared, “It was a pleasure working with Sean, STI’s senior management team and its Board of Directors on this important transaction. We wish Paradigm and the STI team continued success and congratulate them on a successful close."