Primary has backed the £30 million management buy-out of the retail chain Paperchase.

Private equity firm Primary has backed the £30 million management buy-out of the retail chain Paperchase Products from Borders Group.

London-based Paperchase is a designer and retailer of stationery and greetings cards.  The company owns 65 stores across the UK, as well as 35 concession units in other retailers including House of Fraser and Harrods.

The deal is Primary’s eighth investment from its current Primary III fund. Graham Heddle, Neil Wallace, Alistair Armstrong and Oliver Melliss worked on the transaction for Primary, which structured and led the deal.

As part of the deal, Heddle will join the Paperchase board as non-executive director.

Heddle, a director at Primary, comments: ‘Primary is excited by Paperchase’s potential for growth from the roll-out of new UK stores, further UK and international concessions and entry into new markets.’

Lloyds Banking Group will continue to provide facilities to support the company’s
expansion.

The Paperchase management received legal advice from Browne Jacobson, and Primary was advised by Olswang.