Saunders Karp & Megrue Partners With Management To Complete Recapitalization Of World Bazaars, Inc. Private Equity Firm Partners with Leading Supplier of Giftware and Home Décor Accessories To Build Strategic Platform

Furniture World Magazine

Saunders Karp & Megrue (SKM) today announced its acquisition of World Bazaars, Inc., a leading designer and importer of giftware, home furnishings, household accessories, and decorative housewares. The private recapitalization will provide World Bazaars with the necessary financing to grow internally and pursue additional acquisitions. Headquartered in Commerce, California, World Bazaars sells a diverse product line across a variety of giftware and home d´cor categories, including ceramics, collectibles, decorative candles, dollar items, furniture, picture frames, porcelain, seasonal decorations and wall décor. The company sells its merchandise through leading department stores, value-priced retailers, giftware specialty stores and home furnishing stores throughout the U.S. SKM purchased newly issued shares representing a majority interest in World Bazaars. Mr. Hayim Abulafia, the companyís founder, chairman and chief executive officer, and other senior members of the companyís management team, retained a significant ownership position and will continue to operate the company on a day to day basis and oversee its growth. "Since founding World Bazaars in 1980 from the trunk of my car, we have grown to become a leading importer of home accessories despite continued capital constraints," said Mr. Abulafia. "By partnering with SKM, which has significant experience in the giftware and value-retailing industries, we are now in a position to maximize opportunities for ourselves and our customers, and expand our ability to source the most unique and attractively-priced merchandise." "World Bazaars has built a very strong franchise by offering exceptional value to a broad range of retailers, ranging from small giftware and houseware specialty stores to large national value retailers,î said Barron Fletcher, a general partner of SKM. ìHayim and Gerry Mignacca (President of World Bazaars) have assembled an extremely strong team that has demonstrated an impressive track record of growth. We are excited about partnering with Hayim and his team to continue to build the company as a strategic platform through the addition of product categories and selective acquisitions." Saunders Karp & Megrue, a private merchant bank, manages over $800 million of equity capital and pursues private company recapitalizations and growth buyouts in the $40 to $400 million range. The firmís investments to date include over twenty private company recapitalizations, including: Targus Group International, Inc., the world's leading designer and marketer of computer luggage; Dollar Tree Stores, Inc. (NASDAQ; DLTR), the nation's largest chain of variety stores, offering all merchandise at a single price point of $1.00; Hibbett Sporting Goods (NASDAQ: HIBB), the leading operator of full-line sporting goods stores in small markets in the U.S.; Mimiís Café, an owner and operator of a chain of casual theme family dining restaurants in California and Arizona; RSI Home Products, Inc., a manufacturer of assembled and ready-to-assemble bathroom and kitchen cabinets, and California Café Restaurant Corporation, an owner and operator of restaurants in the 'casual elegance' segment of the full-service dining industry. Founded in 1990, the firm has offices in New York, New York and Greenwich, Connecticut. More information about SKM is available by e-mail: barbara@middleberg.com