Spencer Gifts Bought by Private Equity, Management

By Staff -- Gifts & Decorative Accessories, 8/21/2007 6:56:00 AM

Egg Harbor Township, NJ — The management-led buyout of Spencer Gifts Holdings Inc., backed by an affiliate of private equity firm ACON Investments, Washington, DC, is complete. Spencer Gifts operates Spencer’s, a chain of more than 600 mall-based retail gift stores, and Spirit Halloween, which offers seasonal merchandise in more than 500 retail locations.

ACON acquired the company from affiliates of GB Merchant Partners, the private equity arm of Gordon Brothers Group, which retains a minority stake in the business. The company will be operated by its current management team, led by CEO Steven Silverstein, former president of Linens 'n Things. As part of the transaction, management increased its ownership position. A group of lenders led by CIT and Laminar Direct Capital provided financing for the transaction, the terms of which were not disclosed.
  
“The ability to acquire Spencer’s and Spirit Halloween was extremely compelling,"said Ken R. Brotman, founding partner of ACON. "The company has gone through significant changes over the past four years in order to build a solid foundation, which will ensure Spencer’s continued success. Spirit is by far the nation’s largest seasonal Halloween retailer and is growing at a rapid pace, and we are quite excited about its prospects.”