BAML Capital Partners has acquired a majority stake in Provo Craft & Novelty Inc. Seller Sorenson Capital will retain a minority equity stake, as will company management. No financial terms were disclosed. Robert W. Baird & Co. served as advisor to Provo Craft.
PRESS RELEASE
Provo Craft & Novelty, Inc. (“Provo Craft” or the “Company”), a leading creative technology company, announced today that BAML Capital Partners has acquired a majority equity stake in the Company. Sorenson Capital and Provo Craft management will continue to hold significant equity positions in the Company. In connection with the acquisition, Provo Craft has also entered into new senior and mezzanine credit facilities.
The commitment of BAML Capital Partners, Sorenson Capital and Provo Craft management, together with the new credit facilities, positions the Company to execute on its growth plan and to continue serving the creative sector through technology-focused product innovation.
James Thornton, Chief Executive Officer of Provo Craft, commented, “The significant investment by BAML Capital Partners and the continued commitment by Sorenson Capital allows us to focus on growing our business by providing consumers new and innovative products that are fun and leverage their creative potential.”
Fraser Bullock, managing director of Sorenson Capital, said, “We have greatly enjoyed our association with Provo Craft over the past five years and look forward to continuing as a significant minority investor. We believe Provo Craft is a remarkable company with outstanding people and a bright future. We are delighted to be partnering with BAML Capital Partners.”
“We are excited to acquire this interest in Provo Craft,” said Brian Gorczynski, a Managing Director of BAML Capital Partners. “Jim Thornton and his outstanding management team have a commendable track record of developing successful technology products.”
Provo Craft plans to use the investment to continue its growth trajectory following the launch of its flagship Cricut® brand in 2006. The Company recently launched its new Cricut Cake™ product, a version of the popular Cricut electronic cutting system designed specifically to cut cake fondant. The Company expects to announce additional product innovations later this year.
Robert W. Baird & Co. acted as financial advisor to Provo Craft.
About Provo Craft
Provo Craft is a technology company that enables people to be their creative best. For 40 years, Provo Craft has invented new products that bring industrial technology to the masses, including the Cricut® Personal Electronic Cutter, the Cricut DesignStudio™ software, the new Cricut Cake and the Cuttlebug™ Die Cutter and Embosser. These innovative tools help people bring their creative ideas to life in a personalized, professional-looking way at home, in schools and in the workplace. Provo Craft’s products have won dozens of industry awards and are available through leading mass retail, craft, home décor, office, and education outlets nationwide.
For additional information on Provo Craft, please visit www.provocraft.com or www.cricut.com.
About BAML Capital Partners
BAML Capital Partners is the private equity arm of Bank of America Corporation. Bank of America is one of the world’s largest financial institutions, serving clients in more than 150 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
For additional information on BAML Capital Partners, please visit www.bankofamerica.com/bamlcp.
About Sorenson Capital
Sorenson Capital is a private equity firm headquartered in Salt Lake City, Utah, that is focused on small to middle-market buyout and growth equity investments.
For additional information on Sorenson Capital, please visit www.sorensoncapital.com.
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