Source: Dow Jones Business Wire
 
LOS ANGELES - Brentwood Associates ("Brentwood") announced today that it has acquired a majority interest in Paper Source, Inc. ("Paper Source"), a leading designer, manufacturer and marketer of high quality paper products and related items. Susan Lindstrom and James York, the selling shareholders, will maintain a significant minority investment in the company.  
 
Paper Source, founded by Susan Lindstrom in 1983, has a reputation for offering a wide selection of unique paper products in distinctive colors and formats. The company sells specialty paper, invitations, stationery, envelopes, greeting cards, albums, crafting tools and gifts through twenty-one company-owned retail stores located in seven states and the District of Columbia. The company also has a direct-to-consumer business (Internet and catalog), and a wholesale business with over 1,000 accounts.  
 
Concurrently with the acquisition, Brentwood hired Sally Pofcher as the new Chief Executive Officer of Paper Source. Ms. Pofcher is a former Partner with  McKinsey & Company and was recently with  Gap Inc. as the Senior Vice President of Brand Strategy and Business Development. Prior to her role at Gap, Ms. Pofcher spent ten years at McKinsey where she worked with retail, apparel, on-line and consumer financial services clients to deliver operational improvements and refine strategies.  
 
Roger Goddu, a general partner at Brentwood, commented: "Paper Source is an exceptional brand with a unique product offering and retail store concept, which have resulted in a highly loyal customer following. We are very excited about our investment in Paper Source, which has a proven multi-channel distribution strategy with significant potential for growth. We are also very pleased to have Sally join the company and expect that her leadership will be a driving force behind the company's future success."  
 
Sally Pofcher stated: "Paper Source is a unique and inspiring retail experience because its goal is to help consumers 'do something creative every day' - a more ambitious and compelling goal than simply offering a range of stationery and craft products. Consumers respond with a tremendous emotional connection to the brand and tremendous loyalty, as evidenced both by strong comparable store results and the immediate success of our new stores. Sue Lindstrom, one of the finest colorists and creative minds in the industry, will continue to fuel the company with her ideas and vision through an ongoing role as Chief Creative Officer."  
 
Paper Source, Inc. is the fourth investment by  Brentwood Associates' latest fund, Brentwood Associates Private Equity IV, L.P., in the past nine months.  
 
Paper Source, Inc. was advised by Miller Buckfire & Co., LLC and  First Analysis Securities Corp. with legal advice from  Ropes & Gray LLP. Brentwood received legal advice from  Kirkland & Ellis LLP.
 
Paper Source, Inc.  
 
Paper Source, Inc. (www.paper-source.com), based in Chicago, Illinois, is a leading multi-channel marketer of a wide selection of unique paper products in distinctive colors and formats. The company sells specialty paper, invitations, stationery, envelopes, greeting cards, albums, crafting tools and gifts through twenty-one company-owned retail stores located in seven states and the District of Columbia. The company also has a direct-to-consumer business (Internet and catalog), and a wholesale business with over 1,000 accounts. The company's proprietary paper sheets, envelopes and accessories are offered in a unique palette, with colors developed by and exclusively manufactured for Paper Source.  
 
Brentwood Associates
 
Brentwood Associates (www.brentwood.com) is a private equity investment firm with over $750 million of capital under management and a thirty-year history of investing in leading middle-market growth companies. Brentwood focuses primarily on consumer-related investments, where it is able to leverage its extensive experience in areas such as: branded consumer products; consumer services; direct marketing; education; health, wellness, and conscious living; restaurants; and specialty retail. Since 1984, Brentwood's dedicated private equity team has invested in 35 portfolio companies with an aggregate transaction value of nearly $5 billion. With significant experience in both investing and operations, Brentwood is a value-added partner with entrepreneurs and executives building world-class companies.