ANN ARBOR, Mich. Borders Group announced it has closed on the previously announced transaction to sell Paperchase Products Limited to Primary Capital Limited, a U.K.-based private equity firm, for approximately $31 million USD.
On July 13, Borders announced it would sell Paperchase.Under the agreement, Borders Group said it will continue to purchase and carry products designed and sourced by Paperchase in its U.S. stores.
The company will receive proceeds of approximately $31 million (USD based on current exchange rates) upon closing, which is expected within the next week. The company is required to use $25 million of the proceeds to reduce the amount outstanding under its $90 million term loan credit facility. The completion of the sale is subject to customary closing conditions.
"We're excited by the opportunity to build on the success of Paperchase, which is a well known design-led stationery brand in the United Kingdom, whose products have received great visibility through Borders stores in the United States," said Graham Heddle, a director of primary Capital. "We look forward to working with the Paperchase team to build the business over the next few years."
Borders Group acquired a majority interest in Paperchase in 2004.