Borders Group Agrees to Sell Paperchase Products Limited for $31M

Borders Group BGP today announced that the company has entered into an agreement to sell Paperchase Products Limited to Primary Capital Limited, a leading U.K.-based private equity firm. Paperchase, a wholly-owned subsidiary of Borders Group, is a retailer of stationery, cards and gifts based in the U.K. Under the agreement, Borders Group 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.