Tailwind Capital Sells ArrowStream
New York – August 2022 – Tailwind Capital (“Tailwind”) has completed the sale of ArrowStream (“ArrowStream” or the “Company”) to Buyers Edge Platform (“Buyers Edge”). Terms of the transaction were not disclosed.
ArrowStream is a leader in supply chain management visibility for the foodservice industry, enabling clients to capitalize on data to improve their supply chain operations. ArrowStream’s software addresses mission-critical challenges in brand protection, supply monitoring, profitability optimization, and sales growth enablement across the foodservice supply chain, leveraging a single, industry-wide data platform to provide unprecedented levels of transparency, control, and actionable insights. ArrowStream’s market-leading supply chain technology connects over 1,200 distributor locations, 10,000 suppliers and 275 leading clients across 105,000 restaurant locations on a single platform for collaboration, and includes well-known companies such as Shake Shack, QSCC, QDOBA Mexican Eats, Coffee & Bagel Brands, SUBWAY, FOCUS Brands, and International Dairy Queen.
Will Fleder, Tailwind Partner, commented, “We are extremely proud to have partnered with the ArrowStream team. When we acquired the business in 2020, we were impressed by ArrowStream’s unique culture, differentiated technology offerings and blue-chip customer base. Our thesis was based on our conviction that ArrowStream would continue to grow its leadership within supply chain management visibility for the foodservice industry, and the Company achieved many of its key milestones in the first 18 months of our ownership. It was a pleasure to work with the talented team at ArrowStream and we wish them continued success”
Raleigh McClayton, outgoing CEO of ArrowStream, added, “ArrowStream has invested heavily in its people, products, and technology since Tailwind Capital acquired the business. These growth initiatives have enhanced our cloud-based platform by providing real-time visibility and intelligence into the supply chain, which allows our customers to proactively make decisions to manage their businesses. Buyer’s Edge clearly recognized the value of the platform investments, the opportunity to further partner with our clients around innovation, and the talent of our team.”
As part of the transaction, Jeff Dorr, President of Arrowstream, will take over day-to-day operations of the business, and Raleigh McClayton will continue working with Tailwind as an executive focused on tech-enabled services businesses.
“This is a very exciting outcome for ArrowStream,” said Jeff Dorr, President of ArrowStream, who will lead ArrowStream Software as a Buyers Edge platform company. “Our customers are our passion and aligning with Buyers Edge will further enable us to deliver maximum value to our customers throughout the foodservice supply chain. The strong combination of ArrowStream’s foodservice cloud and Buyers Edge’s data intelligence platform is perfectly positioned to address the growing needs of operators, multi-location brands, distributors, and manufacturers.”
Lincoln International served as financial advisor to ArrowStream and Davis Polk & Wardwell LLP served as legal advisor.
ArrowStream is a leading foodservice cloud platform for supply chain intelligence, with over 1,200 distributor locations, 10,000 suppliers and 275 leading brands across 105,000 restaurant locations tightly integrated into a single global network of applications and industry data. ArrowStream provides unparalleled levels of transparency, control, and actionable insight to mitigate risks, streamline operations, protect the brand, and optimize profitability.
About Tailwind Capital
Tailwind Capital is a middle market private equity firm focused on services companies in three core subsectors – Infrastructure Services, Supply Chain and IT Services. Tailwind partners with management teams to Accelerate Change, our operationally intensive approach to value creation through investments in Talent, Technology and Transformative M&A. Since inception, Tailwind has invested approximately $4 billion in over 200 acquisitions, including over 50 platform companies and over 160 add-on acquisitions. For more information, please visit tailwind.com.