Atlantic Street Capital has acquired a majority equity interest in Lori’s Gifts, the largest multi-unit retailer of gift shops in hospitals, from the Bernick family.
Lori’s partners with healthcare facilities to become an outsourced provider of gift shops services and provides all staffing, buying and merchandising, accounting and operational responsibilities. Today, the company operates more than 350 shops in hospitals across the US. Merchandise sold at the shops includes baby products, toys, cosmetics and skin care, activity books, fashion accessories, jewelry, apparel, inspirational gifts, sleepwear, purses, and greeting and special occasion cards.
Lori’s also provides patient gift service at all of their locations and same‐day in‐room delivery for personal care items, gifts, flowers, balloons, drinks, snacks, and other accessories. The company was founded in 1981 and is based north of Dallas in Carrollton, TX and has a corporate staff of 50 in its headquarters and over 1,700 national employees (www.lorisgifts.com).
“We are very pleased to partner with the Bernick family, CEO Kim Schuler, and her management team in the next evolution of the Lori’s growth story,” said Andy Wilkins, Managing Partner at Atlantic Street Capital. “We believe the Lori’s business model can benefit from many of Atlantic Street Capital’s tactical and strategic strengths in managing multi-unit small box specialty retail investments. This, coupled with substantial growth opportunities for new locations, creates an opportunity for us to deliver a significant return for our investors if we can execute.”
Atlantic Street Capital invests from $10 million to $30 million in middle market companies with EBITDA from $4 million to $15 million. Sectors of interest include consumer products and services, transportation and logistics, business services, and basic manufacturing. The firm was founded in September 2006 and is based in Stamford, CT (www.atlanticstreetcapital.com).
“Hospitals value Lori’s as a key partner because the high-quality nature of the retail outlets enhances the reputation of a hospital and allows them to outsource gift shop management and focus on their priority of providing patient care,” said Peter Bernick, a member of the owning Bernick family. “We are very excited that Atlantic Street Capital will now apply knowledge from their earlier successes growing similar businesses and believe there is a bright future for Lori’s.”
Atlantic Street Capital is currently making investments through Atlantic Street Capital III LP, a $210 million fund which closed above target in October 2016.
© 2017 Private Equity Professional | December 20, 2017