Count Chicago’s GTCR Golder Rauner as the latest to get taken by scrapbooking. The Chicago-based firm has agreed to acquire EK Success Ltd., a retailer of paper-based craft products and scrapbooking accessories. The transaction is expected to close in February of next year.
Private equity has been actively targeting the scrapbooking trend. Advent International this summer acquired Peterson Partners’ Making Memories, which followed other deals in the space from FdG Associates (Colorbk Inc.) and JW Childs Associates (Esselte), among others.
The upward momentum of scrapbooking has been drawing investors into the sector. In a statement, GTCR called attention to a “growing interest” in crafts in recent years, citing “double digit” growth in the $33 billion (€28 billion) space. Within the craft industry, scrapbooking accounts for around $2.6 billion.
Speaking about the deal, EK chief executive Chris Skinner commented on the sector’s expansion, and added that the GTCR investment could help the company harness the momentum. “GTCR’s financial support and experience will be invaluable as we continue to capitalise on growth opportunities in the scrapbooking and broader craft segment,” he said in a statement.
No deal terms were made known, although it was indicated that Dresdner Kleinwort Wasserstein has been tapped to underwrite the debt financing for the deal.
Kirkland & Ellis served as legal counsel to GTCR, while EK Success was represented by Reed Smith. Banc of America Securities advised the seller on the deal.