Stout 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 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 positions STI to build on its established manufacturing capabilities, brand portfolio, and customer relationships.