SKY ISLAND CAPITAL ACQUIRES VALLEY FORGE FLAG COMPANY

 January 17, 2022

Dallas, Texas – January 17, 2022 – Sky Island Capital (“Sky Island”), a Dallas-based lower middle market private equity firm, is excited to announce that it has made a majority investment in the nearly 140-year-old Valley Forge Flag Company (“Valley Forge” or the “Company”) alongside the fourth generation of the founding family. Founded in 1882 and headquartered in Pennsylvania with operations throughout the Southeast, Valley Forge is one of the largest manufacturers and wholesalers of branded, “Made in the USA” American flags, military flags, state flags, country flags, as well as other flags and related accessories in the country. Valley Forge’s flags have been a part of many historic moments in America’s past, including the first moon landing, accompanying soldiers as they landed on the beaches of Normandy, as well as adorning the caskets of American Presidents for the last four decades.

“We are excited to partner with Scott Liberman and Debra Bergman to continue their family’s legacy of manufacturing American flags with U.S. sourced materials and U.S. labor to our government, military, as well as commercial and retail partners,” remarked Will Dobbs, a Partner with Sky Island Capital.  “Valley Forge is an iconic company and we are grateful Scott and Debra chose Sky Island to be their partners and to have them continue at the helm of the company they have helped build over decades.”

Valley Forge has been serving the U.S. government and military for more than 75 years, providing a full suite of American flags, military flags, and related accessories. The Company is also a partner to a number of commercial accounts, ecommerce retailers, as well as one of the largest providers of flags and accessories to mass merchant retailers in all 50 states. With a catalog of more than 2,800 items, Valley Forge has a full suite of products from flag kits (including poles and brackets), to replacement flags, to stick flags found in ceremonies and parades, to complementary indoor and outdoor hardware and accessories.

Scott Liberman, CEO and fourth generation co-owner of Valley Forge, remarked, “We are thrilled to partner with Sky Island. Their extensive manufacturing expertise coupled with our shared vision of the future of the company will allow us to realize the full potential of Valley Forge Flag.”

Valley Forge is Sky Island’s second platform investment in its inaugural fund.

About Sky Island Capital

Sky Island Capital (www.skyislandcap.com) is a lower middle market private equity firm based in Dallas, Texas that makes control investments in strategically viable North American manufacturing companies that exhibit transformational upside potential.  Sky Island focuses on situations where it can draw upon its deep operational experience to support senior management in driving significant value creation through operational and strategic partnership, including add-on acquisitions.  Sky Island is comfortable with and has a history of executing transactions with complex dynamics, including family-owned businesses, management buyouts, corporate carve-outs, public to privates, lender-controlled businesses, and other special situations.

About Valley Forge Flag Company

Founded in 1882 and run by the fourth generation of the founding family, Valley Forge Flag Company (www.valleyforgeflag.com), The Greatest Name in Flags, is one of the country’s oldest and largest manufacturers of branded, “Made in the USA” American flags and other flags and accessories. Headquartered in Pennsylvania with operations through the Southeast, Valley Forge is a vertically integrated manufacturer with a commitment to domestic production. Since its beginning as a government contractor proudly providing flags to America’s civil servants, the fabric of American history is woven into every Valley Forge flag. As a founding member of the Flag Manufacturers Association of America, Valley Forge is proud to be an American manufacturer committed to sourcing domestic materials and using American workers to bring the Company’s expansive product offering to market. Today, the Company has a wide reach, serving the mass retail, commercial, ecommerce, and government channels under its iconic Valley Forge and Betsy Flag brands.

For more information, please contact Will Dobbs or visit the website listed below:

Will Dobbs

Partner

will@skyislandcap.com

www.valleyforgeflag.com