US-based private equity firm Atlantic Street Capital (ASC) has acquired a significant stake in Lori’s Gifts, a Texas-based retailer of gift shops in hospitals.

Established in 1981, Lori’s Gifts operates more than 350 gift shops in hospitals across the country, which deliver personal care items, gifts, flowers, balloons, drinks, snacks and other accessories to patients.

Atlantic Street Capital managing partner Andy Wilkins said: “We are very pleased to partner with the Bernick family, CEO Kim Schuler and her management team in the next evolution of the Lori’s growth story.

“We believe the Lori’s business model can benefit from many of Atlantic Street Capital’s tactical and strategic strengths in managing multi-unit small box speciality retail investments.

“Lori’s Gifts operates more than 350 gift shops in hospitals across the country.”

“This, coupled with substantial growth opportunities for new locations, creates an opportunity for us to deliver a significant return for our investors if we can execute.”

Atlantic Street Capital acquired Lori’s Gifts stake from Bernick.

Speaking on behalf of the Bernick, Peter Bernick said: “Hospitals value Lori’s as a key partner because the high-quality nature of the retail outlets enhances the reputation of a hospital and allows them to outsource gift shop management and focus on their priority of providing patient care.

“We are very excited that Atlantic Street Capital will now apply knowledge from their earlier successes growing similar businesses and believe there is a bright future for Lori’s.”