Investcorp has acquired Paper Source, a multi-channel retailer of gifts, stationery and crafting supplies, from Brentwood Associates which acquired Paper Source in 2007.
In May 2013, Brentwood completed a dividend recapitalization of Paper Source which was financed through a new $50 million credit facility, and provided a return that exceeded Brentwood’s original investment in the company. Brentwood’s ownership stake in company remained unchanged.
Paper Source sells a selection of fine and artisanal papers, invitations and announcements, personalized and distinctive gifts, gift wrap, greeting cards, custom stamps, and a custom collection of envelope and cards through its company-owned retail stores, direct-to-consumer (Internet and catalog), and wholesale. The company operates 73 stores across 23 states. Paper Source is headquartered in Chicago (www.paper-source.com).
“Paper Source is a market-leading retailer with a differentiated product offering and exceptional customer service. We look forward to working with Sally Pofcher, CEO of Paper Source, and the rest of the Paper Source team as they seek to continue to grow the company’s store base and e-commerce presence,” said Kevin Nickelberry, a Managing Director at Investcorp.
Investcorp invests in mid-size companies operating in an array of industry sectors that have total enterprise values of between $200 million and $1 billion and are located in North America or Western Europe. As at June 30, 2013, Investcorp had $10.5 billion in total assets under management. The group has offices in New York, London, Bahrain and Saudi Arabia (www.investcorp.com).
Brentwood Associates is a consumer-focused private equity investment firm with over $850 million of capital under management. Sectors of interest include branded consumer products; consumer and business services; direct marketing, including direct mail and e-commerce; education; health and wellness; restaurants; and specialty retail. The firm was founded in 1972 and is based in Los Angeles, CA (www.brentwood.com).
“Investcorp is a highly complementary partner for Paper Source, with a track record of growing strong retail brands,” said Sally Pofcher, CEO of Paper Source. “This transaction provides us with a deep capital base to expand our domestic footprint and pursue direct marketing opportunities, as well as a partner that has an established reputation for working effectively with management teams.”
Morgan Joseph TriArtisan acted as financial advisor to Paper Source.
© 2013 PEPD • Private Equity’s Leading News Magazine • 9-24-13
