Investment Firm Buys Controlling Interest in Zorch

As first reported in a Counselor Breaking News Alert, Satori Capital, a Texas-based multi-strategy investment firm, has acquired a controlling interest in Top 40 distributor Zorch International Inc. (asi/366078). The transaction closed early this week. Terms of the deal were not disclosed.

In an interview with Counselor, Zorch CEO Mike Wolfe said that his firm increased year-over-year revenue 13% in 2017 to approximately $48.4 million, thanks in part to new customer acquisition. Joining with Satori will help the Chicago-based distributor to accelerate growth in 2018, Wolfe said.

“Satori is the perfect partner to help us take the next step in our evolution,” Wolfe told Counselor. Business will continue as usual at Zorch, with leadership and operations remaining the same, Wolfe said.

Principals at Satori are excited about the acquisition, believing that Zorch is poised for sales growth and market share gain. “The company has developed a powerful, technology-enabled approach that leverages the capabilities of its supply chain, improving efficiency and reducing costs for customers,” said Satori Co-Founder Sunny Vanderbeck. “It’s simply a better way to operate, and over the long term, we believe Zorch will dramatically outperform its competitors.”

Over the last two years, Zorch has driven revenue gains of approximately 30%. The distributor focuses on servicing large corporate programs. To help attract and retain big clients in the category, Zorch says it uses a technology application and streamlined service model that reduces the need for bulk inventory and densely staffed fulfillment teams.

Zorch’s model also includes providing dedicated e-stores for customers. The e-stores allow clients to communicate directly with suppliers and create a single source for logos and artwork – a convenience that Zorch says significantly reduces order errors. Also, the e-stores can integrate with customers' procurement systems and freight carrier accounts, helping to cut order and shipping costs, Zorch says.

"We have created a transparent, streamlined, single-source solution to help large organizations order more efficiently, protect and promote their brands, and -- most importantly -- save money," said Wolfe.

Zorch ranked 39th on Counselor’s most recent list of the 40 largest distributors in the industry – a ranking based on reported 2016 North American promotional product revenue of $42.9 million. Zorch has also appeared on Counseor’s “Best Places To Work” list.

With offices in Dallas and Fort Worth, Satori partners with leadership teams of companies that produce EBITDA of $5 million to $25 million.