Peterson Partners

SALT LAKE CITY – January 16, 2009: Peterson Partners, a Salt Lake City based private equity fund, has announced the recent sale of HandiQuilter to Hanover Partners, a private investment firm with offices in San Francisco and Portland. Terms of the transaction were not disclosed.

Located in North Salt Lake, Utah, HandiQuilter was founded in 1999 by Laurel Barrus before Peterson Partners acquired a controlling stake in the company in 2006. Since then, HandiQuilter has experienced approximately 70 percent growth, becoming one of the nation’s premier designers, manufacturers and distributers of quilting machines and accessories for quilting enthusiasts.

With the capital markets crisis in 2008 nearly crippling the market for buying and selling companies during the last half of the year, management’s ability to expand the HandiQuilter business played a vital role in the transaction’s success.

"HandiQuilter’s ability to grow and prosper in the midst of the economic turmoil reflects the remarkable strength of this company’s brand and leadership," said Jim Nelson, who led the transaction for Peterson Partners. "CEO Mark Hyland and his team have built a great product and company around the founding principles established by Laurel Barrus. We wish them continued success as they work to take the company to its next level of growth."

Since 2007, Peterson Partners has sold its interest in several portfolio companies in anticipation of company enterprise values peaking. With valuations now trending down, Peterson Partners is seeking new investment opportunities.

Jordan Clements, managing partner of Peterson Partners, said that they recently completed their fifth investment fund representing committed capital of $115 million. "We’ll continue backing great entrepreneurs such as Mark Hyland and anticipate investing at attractive company valuations over the next couple of years as a result of the steep discounting that has occurred during the recent economic turmoil," Clements stated.

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About Peterson Partners.
Peterson Partners, based in Salt Lake City, Utah is one of the Intermountain West’s most successful private equity firms. Specializing in small to mid-sized companies, Peterson Partners has a track record of successful investments including JetBlue, Making Memories, EnergySolutions, 3form, Cranium, Asurion, Instashred, Winder Farms and Diamond Rental. Founded in 1995, Peterson Partners has managed over $400 million in committed capital through five funds. For more information, visit www.petersonpartnerslp.com.