Tully & Holland Announces Sale of Linen Source, Inc. to Orchard Brands Corp.

Press Release

Wellesley, MA — Linen Source, Inc., a leading direct marketer of bedding and home furnishings based in Tampa, FL has completed the sale of its assets to Orchard Brands Corporation, Beverly, MA, a portfolio company of Golden Gate Capital, San Francisco, CA. The terms of the transaction were not disclosed.

Orchard Brands, a $1.1 billion multi-channel marketer of apparel and home products, acquired Linen Source to broaden its product offering and provide a diverse selection of high quality bedding and home décor products to its target customer. Orchard Brands will consolidate Linen Source's business operations into its existing organization.

Linen Source, one of three direct marketing companies collectively known as The Thompson Group, will benefit from access to Orchard Brand's extensive customer file. Alix Franzblau, Treasurer of The Thompson Group comments "We are excited about Linen Source's opportunity for future growth within the Orchard Brands collection of top specialty clothing, footwear, household and health brands. This sale, in combination with the sale of Casual Living USA, completes the restructuring of The Thompson Group and allows us to focus on the continued growth of The Thompson Group's remaining business, Thompson Cigar."

Tully & Holland Inc. initiated the transaction and acted as the exclusive investment banking advisor to Linen Source.

About Linen Source
Linen Source is a leading direct marketer of bed linens and home textiles. The Company was founded in 1943 as Colonial Maid Curtains and was purchased by the Franzblau family in 1990. After a brief transition, the product mix shifted to focus on bedding. Linen Source now offers a diverse selection of high quality, proprietary bedding and home décor products. Linen Source targets women over the age of 45 with a household income over $60,000.

About Tully & Holland
Tully & Holland, an investment bank established in 1992, provides corporate finance and merger & acquisition advisory services to middle market consumer product companies. The firm has particular expertise representing multi-channel marketers, retailers, food & beverage companies, and consumer product manufacturers and distributors. For further information on the Linen Source or Casual Living transactions or the firm, please visit our website at www.tullyandholland.com.