Graphite sells Paperchase to Borders

Graphite Capital has sold its interest in Paperchase, the UK stationery and greetings cards retailer, to Borders Group Inc, the US-based global book, music and movie retailer. The deal values Paperchase at £18.6m. It brings Borders Group’s interest in Paperchase to 97% from 15%. Borders originally purchased an interest in Paperchase in January 1999.

Graphite Capital (previously known as F&C Ventures and trading as part of the Foreign & Colonial fund management group) bought Paperchase from WH Smith, the UK high street retailer, in June 1996. Timothy Melgund, currently CEO of Paperchase, led the buyout alongside fellow executives Robert Warden and Esme Winch. At this time Paperchase had just 16 stores, which has grown to 61 today, which range from stand-alone stores, railway retail outlets and concessions in shops such as Borders.