Renovo Capital Acquires Formation Enterprises, Consolidates with Clay Art Products To Create Multi-Brand Housewares Designer/Importer

NEW YORK, July 27, 2009 –Renovo Capital, LLC, a private equity group focused on distressed and special situation investing, announced today the acquisition of substantially all the assets and on-going operations of Formation Enterprises, LP and its related entities by Formation Brands, LLC, an affiliate of Renovo Capital. Renovo also consolidated Clay Art Products, which it previously acquired, into Formation Brands to create a multi-brand Housewares/Tabletop designer and importer.

Formation Brands comprises both branded and non-branded creative design and sourcing operations supplying the Housewares, Novelty Gift and Tabletop industries. Formation Brands’ product offerings utilize a wide range of mediums, including glass, ceramic, and acrylic in the serveware, glassware, giftware and dinnerware categories. Formation has consolidated all design, sales and administrative operations in San Francisco, CA. and all sourcing operations in Shenzen, China.

Formation designs, sources and distributes non-branded products for leading department stores and specialty retailers. Formation Brands branded offerings include:

• Clay Art, a 30-year-old brand in the tabletop and novelty gift industry, known for its innovative design and production techniques for hand-painted ceramic serveware, chip and dip platters, cookie jars, salt and pepper shakers and other novelty items.
• Slant a bold contemporary glassware and tabletop line featuring innovative glass design techniques
• Stir a playful, interactive ceramic and acrylic line of mugs and beverage related accessories

FirstCity Crestone provided a senior debt bridge loan facility and a term loan facility in conjunction with the closing of the acquisition.

ABOUT FIRSTCITY CRESTONE:

FirstCity Crestone is a special situations investment company with a broad mandate to invest in a variety of lower middle-market assets. The company buys distressed debt, invests in troubled companies, originates junior and senior high yield loans, and executes control and non-control small market buyouts. FirstCity Crestone targets transactions between $1 and $25 million.