Alternative investment firm expands presence in US with Paper Source buy
Bahrain-based alternative investment manager Investcorp has acquired stationary retailer Paper Source for an undisclosed sum.
In a statement on Tuesday, Investcorp said that it had struck a deal with Los Angeles-based private equity firm Brentwood Associates for the company, which is headquartered in Chicago and has 73 stores across 23 US states.
“Paper Source is a market-leading retailer with a differentiated product offering and exceptional customer service,” commented Investcorp president for Gulf business Mohammed Al-Shroogi. “We look forward to working with [CEO] Sally Pofcher and the Paper Source team as they seek to continue to grow the company’s store base and ecommerce presence.”
Morgan Joseph TriArtisan acted as financial advisor, and Gibson, Dunn & Crutcher acted as the legal advisors.
In its latest financial quarter Investcorp reported a 56 percent rise in full-year net income on Tuesday, aided by strong growth in fee income.
Investcorp, which expects to fully invest its $1bn Gulf fund in 2013, made a net profit of $104.9m in fiscal year 2013 ended in June, compared with $67.4m in the previous year.
Profit growth was driven by "a very strong increase in deal activity fees", Rishi Kapoor, Investcorp's chief financial officer, said.
Fee income at the company, which previously took luxury brands Gucci and Tiffany public, rose 40 percent to $329.5m, Investcorp said at a news conference in Dubai.
The company has recently been linked with a takeover of Italian luxury firm Versace.