Provo Craft & Novelty Partners with Sorenson Capital

SALT LAKE CITY--(BUSINESS WIRE)--May 27, 2005--Provo Craft & Novelty, one of the world's fastest growing product providers for crafters and hobbyists, and Sorenson Capital, a private equity fund based in Salt Lake City, today announced Sorenson Capital has become an investment partner in Provo Craft.

Provo Craft, which owns the Roberts Arts & Crafts chain, distributes more than 6,000 proprietary, and more than 20,000 non-proprietary, craft and hobbyist products to retailers around the world. Merchandise includes many award-winning items for paper crafting, home decor and general crafts.

With the addition of financial resources gained from partnership with Sorenson Capital, Provo Craft intends to continue its rapid-growth strategy through innovation and new-product development.

"We've come a long way since our first retail store," says Robert Workman, CEO of Provo Craft. "In our partnership with Sorenson Capital, we want to continue that growth. Sorenson Capital shares our core values and brings us a tremendous amount of strategic, financial and operational experience."

The Sorenson Capital management team includes three former CEOs and several members who have top-level experience at leading strategy consulting firms and other prominent financial institutions in the U.S.

"We think the Provo Craft management team has done a fantastic job building their business," said Fraser Bullock, managing director of Sorenson Capital and former COO of the 2002 Salt Lake Winter Olympics. "We look forward to helping them continue to grow an outstanding company." Provo Craft management has retained a significant equity stake in the business and will continue in their current roles.

The U.S. craft market has grown rapidly in recent years and is currently a $29 billion industry. Scrapbooking accounts for approximately $3 billion of the total.

About Provo Craft & Novelty
Provo Craft & Novelty Inc. was founded in 1964 with a single retail store and has grown to become one of the largest and most respected craft companies in the world, manufacturing, importing and retailing craft products. Headquartered in Spanish Fork, Utah, Provo Craft operates 10 retail stores in Utah and Idaho and has a 200,000 square-foot distribution facility in Spanish Fork.

About Sorenson Capital
Sorenson Capital is a private equity fund that provides small- to middle-market buyout and growth equity investments. Sorenson Capital is managed and controlled by West Rim Capital and has offices in Salt Lake City, Utah; Palo Alto, California, and Phoenix, Arizona.

SOURCE: Yahoo! Finance.