Borders Buys U.K. Retailer
by John Mutter -- Publishers Weekly, 7/19/2004
Borders Group has purchased a controlling interest in Paperchase Products Limited, a U.K. stationery, gift wrap and greeting cards retailer. Most of Paperchase's sales are through 61 stand-alone stores and concessions in other stores, including 28 Borders and Books etc. stores in the U.K. Most stationery and gift items in Borders's U.K. and Singapore stores come from Paperchase, and some Paperchase products are sold in U.S. Borders stores.
Borders formerly had a 15% stake in Paperchase. Its purchase of all the shares owned by majority shareholder Graphite Capital, a private equity investment company, and many of the shares held by management boosted its stake to 97%. The purchase put the value of Paperchase at £18.6 million ($34.1 million), including the assumption of £2.3 million of debt.
