Guardian Capital Partners, a Philadelphia, Pennsylvania-based buyout firm purchased a control stake in Sure Fit Inc., a slipcovers and furniture accessories company.

Guardian Capital acquired the Allentown, Pennsylvania-based supplier from New York City-based hedge fund D. E. Shaw Group for an undisclosed value. DE Shaw and the Miami textile firm J.R. United partnered to acquire the troubled supplier for $16.5 million in cash and assumed $4 million of Sure Fit's liabilities, in a bankruptcy auction in August 2004. Sure Fit, which was founded in 1914, had suffered significant losses as a result of industry changes, had filed for bankruptcy protection in March 2004.

The transaction was led by Guardian Capital managing partners Scott D. Evans and Peter H. Haabestad. In speaking with Mergers & Acquisitions, Evans said Sure Fit sells approximately 60 percent of its products through retail sales, and nearly 40 percent through the direct market and other channels. In addition to growth plans in both the retail and direct markets, Evans said he expects to focus on developing commercial markets, such as sales to events, hotels and motels.

Haabestad told this publication he does not expect changes to the Sure Fit’s management team.

The lower middle market firm was founded in February 2008 by managing partners Scott Evans, Peter Haabestad, and Hugh Kenworthy III. Evans formerly worked in Cerberus Capital Management LP. Haabestad was previously a managing director of investment banking and head of Susquehanna Financial Group LLLP’s diversified growth banking unit. Kenworthy was president of the Brynavon Group, Inc.

In October 2008, Guardian Capital acquired a control stake in Corporate Call Center, a Blue Bell, Pennsylvania-headquartered call center company.

The slipcover business is expected to perform well in the current economic environment, according to Evans. “It is a good alternative in the redesign market,” he said.

Wells Fargo Business Credit and Argosy Private Equity, a Wayne, Pennsylvania-based mezzanine lender, provided financing for the acquisition. In addition, Hugh Rovit, invested in the company, alongside Guardian.

Evan said the company could look into tuck-in acquisitions after the first year of ownership. Potential add-on acquisitions could include companies that manufacture products in the home goods category, such as textile businesses or a vertical segment, such a curtains.

Guardian Capital is currently investing out of its initial fund, Guardian Capital Partners Fund I, L.P., which closed with $50 million in committed capital.