Specialty Catalog Sells to EdgeStone Capital Partners--Direct Marketing, Mail Order, E-commerce News

Direct Marketing, Mail Order, and E-commerce News from the National Mail Order Association

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Specialty Catalog Sells to EdgeStone Capital Partners

Goldsmith Agio Helms is pleased to announce the completed sale of its client,
Specialty Catalog Corp. (“Specialty Catalog”), a South Easton, Mass.-based
multi-channel direct marketer of women’s wigs, hairpieces and related
products, to EdgeStone Capital Partners Inc. (“EdgeStone”), a
Toronto-based private equity fund.

HIGHLIGHTS FROM THE TRANSACTION
Gilbert Palter, Managing Partner of EdgeStone, remarked, "Specialty
Catalog, the largest direct marketer of women’s wigs in the U.S., provides
EdgeStone with a very attractive platform for future growth. Our plans are
to leverage the company’s stable operating model, which is underpinned
by a recurring revenue and cash flow stream, through the pursuit of
various product and customer segment growth opportunities.”

Joseph Grabowski, CEO of Specialty Catalog, said that “The timing of
this transaction is excellent. Specialty Catalog is entering a new phase of
growth as maturing baby boomers enter our core demographic.
EdgeStone will provide us with access to capital that will enable us to
grow and expand our market share at a most opportune time.”

David Solomon, a managing director and partner of Goldsmith Agio Helms,
commented, “The sale of Specialty Catalog is the 22nd successful
transaction completed by our Direct Marketing Group, and reinforces our
position as one of the leading M&A advisors to the industry.”

THE COMPANY
Specialty Catalog (www.scdirect.com) is the nation’s leading direct marketer of women’s wigs and hairpieces offering a broad range of comfortable, stylish products at affordable prices. Specialty Catalog serves the medical hair loss and fashion needs of millions of women each year, distributing its products directly to customers via highly developed and successful catalog and internet marketing vehicles in both the United States and the United Kingdom, as well as through select retail outlets in the United Kingdom. The Company also markets its products indirectly through salons and other retailers. The Company’s most prominent brands domestically are Paula Young (www.paulayoung.com) and Especially Yours (www.especiallyyours.com). In the U.K. the Company markets its products under the Natural Image, Jacqueline, Paula Young, and HotHair brands.

THE BUYER
EdgeStone Capital Partners (www.edgestone.com) is one of Canada’s leading private capital providers. EdgeStone's strategy is designed to drive superior investment performance by leveraging its investing Partners’ strategic and operational competencies and capitalizing on the resources of the firm's strategic and business partners.

ABOUT GOLDSMITH AGIO HELMS
Goldsmith Agio Helms (www.agio.com) is one of the nation’s leading investment banking firms providing financial advisory services to middle market businesses. The firm's services include mergers and acquisitions, private placements of debt and equity, distressed advisory and restructuring, and valuations and fairness opinions. The firm operates internationally from its offices in Minneapolis, New York, Chicago, Los Angeles, and London.