Jones Lang LaSalle


Chicago’s GTCR Closes Purchase of N.J. Crafts Maker

GTCR Golder Rauner, a private equity firm in Chicago, announced today that it has wrapped up its management buyout of Clifton-based EK Success for an undisclosed amount.

Also, as previously announced, the firm and EK Success have entered into a deal with Martha Stewart Living Omnimedia (MSLO) to manufacture, market and sell Martha Stewart Crafts products.

EK Success, a craft-products maker with about 228 employees, reports a leading market share of the fast-growing $3.0 billion scrapbooking segment, which represents about 10% of the total U.S. craft industry.

"EK's management team and employees are thrilled with our partnership with GTCR and MSLO," said CEO Chris Skinner. "GTCR's financial support and experience will be invaluable as we evaluate acquisition opportunities in the fragmented crafts industry." Vince Hemmer, a principal with GTCR, told NJBIZ that his firm is in the midst of "continual dialogue" with several companies engaged in the broad crafts sector for a possible merger with EK.

The Martha Stewart Crafts product line is to be launched with paper-based craft and scrapbooking merchandise in the first quarter of 2007. The line will be sold in the major craft chains and in independent craft stores throughout the country, as well as on the Internet.
EK has also made some executive changes. It recently hired Tom Kasvin as CFO and promoted Dan Kochenash from vice president of operations to COO. Prior to joining EK, Kasvin served as the CFO of United Pet Group, a subsidiary of Spectrum Brands. - Ki Kim