H.I.G. Capital announced its portfolio company, Circle Graphics acquired Graphik Dimensions, LLC, a High Point, NC-based provider of customized framed wall décor products. Graphik Dimensions, which was founded by the Feinsod family in 1965, operates in several verticals, including PictureFrames.com.
“Graphik Dimensions’ high-quality custom-framed products further expands Circle’s wall décor product offering into another highly complementary category,” commented Andrew Cousin, CEO, Circle Graphics. “The company has a long history of category leadership under the Feinsod family dating back to the 1960s, and we look forward to continuing that tradition as we seek to find innovative ways to grow the combined business together.”
“We are thrilled to have found a true partner in Circle,” said Geo Krieg, President of Graphik Dimensions. “We sought to find a strategic partner that could not only provide resources to help us scale alongside our growing customers, but also would work with us to maintain the brand we worked so hard to build and grow over the past 55 years. We are excited to work with Andrew and the Circle team to further expand our business, while continuing to provide the highest quality products and service to our combined customer base.”
Graphik Dimensions represents the third add-on acquisition Circle Graphics has completed since H.I.G. acquired the Boulder, Colo-based company just over one year ago. In 2020, Circle Graphics had purchased Bay Photo and Metromedia Technologies.
In the recent Dead Pixels Society podcast, Cousin discussed the factors driving industry consolidation:
“First, we are a fragmented market still, and I think there is something of natural order to consolidation as a market grows and matures. Secondly, the market itself is growing, I think setting aside what we have seen in 2020, that I think is a bit of an artificial lift to demand based on people being stuck at home for a period of time and, and the decorating phenomenon has been well kind of documented and written about in terms of Home Depot selling more grills than ever, and people at home and if they’re going to be there, they’re fixing things up.
“Our estimate is the personalized wall decor market is growing in the 9-11% range. Growth in an industry will also I think, attract investors, as growth is one of the key determinants as to whether your investment makes a good rate of return or not. Thirdly, I think, for whatever reason, the private equity world has taken an interest in the personalization space and, of course, personalized wall decor.”