L.A. Firm to Sell Retailer of Crafts

Carlyle Group said Tuesday that it would buy Oriental Trading Co., a retailer of crafts, jewelry and party supplies, highlighting the appeal of retailers to private equity firms.

Terms of the deal, expected to be completed in the third quarter this year, were not disclosed.

The company sold to Carlyle for around $1 billion, a source familiar with the matter said.

Los Angeles-based private equity firm Brentwood Associates bought Oriental Trading in 2000 for an undisclosed amount and launched a leveraged debt recapitalization last year to receive a $100-million dividend from the company.

Brentwood is keeping a 25% stake in Oriental Trading, said Chris Ullman, a spokesman for Carlyle Group.

He said Oriental Trading’s long record of revenue growth made the company attractive.

The purchase of the Nebraska-based company continues Carlyle’s expansion into consumer goods. In December, Carlyle was part of a consortium that purchased Dunkin’ Donuts franchiser Dunkin’ Brands Inc. for $2.43 billion.