MBE Worldwide Acquires AlphaGraphics Inc.

Western Capital Resources, Inc., announced the sale of AlphaGraphics, Inc. to US Business Holdings Inc., an affiliate of MBE WorldWide. The Company entered into a Purchase and Sale Agreement with MBE on October 3, 2017, pursuant to which the Company agreed to sell all of the capital stock in AlphaGraphics, the sole business comprising the Company's franchise segment, for an aggregate purchase price of $61,500,000 (subject to adjustment), less approximately $1,185,600 in payments to AlphaGraphics to satisfy obligations to its other security holders.

John Quandahl, president and CEO of the Company, commented by stating, "We firmly believe this transaction is a win for Western Capital Resources and its stockholders, and a win for AlphaGraphics and all of its constituents, specifically including its franchisees in that MBE is a strategic and sophisticated buyer whose management has significant experience in franchising operations and is dedicated to strengthening AlphaGraphics' offerings and competitiveness in the domestic and international markets."

Angel Donchev, the Company's CFO and CIO, further commented by stating "This sale will tremendously strengthen our balance sheet, and allow us to proceed aggressively with our strategic direction for the Company, which remains unchanged—making strategic acquisitions of our own to grow our portfolio of holdings and provide our stockholders with excellent returns."

AlphaGraphics has been owned or controlled by Blackstreet Capital Partners II, LLC and its affiliates since January 2012, when Blackstreet purchased AlphaGraphics out of a U.K. bankruptcy sale, and later contributed AlphaGraphics to the Company. Under Blackstreet's control, AlphaGraphics was able to stabilize and grow its franchise base as well as substantially grow its earnings.  Blackstreet is a private investment firm and registered investment adviser based in Chevy Chase, MD, and founded by Murry Gunty.

"We have enjoyed our relationship with AlphaGraphics and its franchisees over the years," said Murry Gunty, Blackstreet founder and CEO. "We believe they are in very capable hands with MBE, which is positioned to do great things with the business going forward.  We are also excited for future opportunities that Western Capital Resources can capitalize upon with the proceeds from this sale. We congratulate John, Angel and their team on a job well done on this investment."