Sorenson Capital, which purchased a majority stake in Provo Craft in 2005, has now sold a majority stake in the company to BAML Capital Partners. Sorenson Capital will retain a minority stake in the company, along with Provo Craft management.
BAML Capital Partners is the private equity group of Bank of America, that was created by the Bank of America and Merrill Lynch equity groups. As part of the acquisition, Provo Craft has entered into new credit arrangements that it says will facilitate its continued growth.
BAML Managing Director Brian Gorczynski focused on Provo Craft’s technology products as the real value of the acquisition:
We are excited to acquire this interest in Provo Craft. Jim Thornton and his outstanding management team have a commendable track record of developing successful technology products.
Other contents of the press statement about the acquisition also seemed to stress that the company sees itself as a technology company, focusing on the history of the Cricut line and the debut of the Cricut Cake. The announcement also indicated that Provo Craft “expects to announce additional product innovations later this year.”
Provo Craft had revenues of over $250 million in 2009. According to a 2009 article in Utah Business magazine, the company’s revenue has doubled (and profits gone up 500%) under the tenure of current CEO Jim Thornton. That article also emphasized that the company’s future lies in technology, saying Thornton “visualizes the company becoming a half-billion dollar enterprise within the next five years as it becomes one of the top technology brands.”
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