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Stonegate Capital Partners Initiates Coverage on Talon International, Inc.

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DALLAS, TX / ACCESSWIRE / July 6, 2016 / Stonegate Capital Partners initiates research coverage on Talon International, Inc. (OTC: TALN).

Company Description

Talon International, Inc. is a leading supplier of customized zippers and apparel accessories. Talon International has a globally recognized brand backed by 120 years of experience in the industry. The company is responsible for the invention of the sliding zipper device. Talon's product mix is composed of two main items: zippers and managed trim solutions (i.e. woven & printed labels, buttons & rivets, printed marketing, zippers, thread as well as any other type of trim or accessory product), and Tekfit Stretch Technology™. Tekfit® has exclusive rights to advanced fabric technologies, which facilitate the addition of mechanical stretch into most standard fabrics. There are numerous applications, including waistbands that have the ability to stretch out and back, without the need to add costly and unsightly elastics or other components. Talon is headquartered in Woodland Hills, California, a northern suburb of Los Angeles, and currently employs 195 full time employees, including 28 in the United States and 167 in Asia.

Summary

Talon plans on capturing continuing growth via its integrated business model that provides clients with a one-stop shop for their zipper and trim needs. By operating as a fully integrated, single source supplier focused on being a one-stop shop for its clients, Talon can save clients' time and expenses. Furthermore, by leveraging its decades of experience and expertise in engineering, sourcing, manufacturing and assembly, Talon has positioned itself to effectively compete in a highly fragmented industry. The company's ability to deliver superior products, unmatched customer service, and leading customization capabilities is what sets it apart from its peers. Talon is well-positioned to be an industry leader:

  • The company has emerged from a multi-year restructuring effort and recent recapitalization that has enhanced its financial flexibility and set the stage for growth.
  • Talon plans to capitalize on a highly fragmented marketplace where major brands/retailers typically have a large number of suppliers spread across the globe from which they obtain their required components. By creating stickier clients with whom they can become a proven supplier helps insulate their clients from the pricing pressures of larger manufacturers.
  • The company seeks specialty retail and premium brand opportunities where customers are more concerned about their brand image, brand awareness, high level of service, and flexibility offered at the right price.
  • Talon looks to form strategic product alliances and tuck-in acquisitions that will widen its product offerings and increase cross selling opportunities.
  • Management wants to improve its brand differentiation with an active R&D program that continues to press for innovative products catering to changing fashion trends. By addressing the industry's increasing appetite for technology Talon is focused on pursuing disruptive technologies in apparel related products.
  • The company has an effective marketing program for innovative product lines such as Tekfit®, a patented technology that creates a stretchable product that will return to its original size without altering the garment's appearance.
  • Talon is making positive steps on the Tekfit® product line by ramping sales for the Phillips Van Heusen Flex Collar Shirt and Uniqlo's jean application, which started in 2Q15.
  • The company has a highly experienced management team led by Larry Dyne and Nancy Agger-Nielsen, both among Talon's top individual shareholders.
  • We believe Talon is considerably undervalued based on precedent transactions in their industry. With topline revenue growth and as Tekfit® sales ramp, Talon could be attractive from an acquisition standpoint.

The full report can be accessed by clicking the following link:

http://stonegateinc.com/reports/TALN_July_2016
Final.pdf

About Stonegate Capital Partners

Stonegate Capital Partners is a Dallas-based corporate advisory firm dedicated to serving the specialized needs of small-cap public companies. Since our inception, our mission has been to find innovative, undervalued public companies for our network of leading institutional investors who seek high quality investment opportunities.

SOURCE: Stonegate Capital Partners

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