Pentzer Unloads Creative Solutions Avista Corp. Subsidiary Had Been Offering Group Since Last Fall

Pentzer Corp. has sold its Creative Solutions Group to a private investment firm in a transaction that will generate $50 million in cash for the Avista Corp. subsidiary.

Creative Solutions included a number of small companies around the U.S. that design and manufacture store displays and packaging.

Avista spokesman Pat Lynch said Pentzer, which had pre-sale equity of $140 million, has been shopping Creative Solutions since last fall.

Creative Solutions represented about 27 percent of Pentzer’s equity, he said.

The deal is not a precursor to the disposal of other Pentzer operations, Lynch said, cautioning, “You can’t forecast what we will do with other pieces of the business.”

Pentzer, which has routinely purchased and sold businesses over the years, has been a consistent contributor to Avista earnings.

In the largest previous transaction, the holding company sold the Spokane Industrial Park in 1996, netting $11 million.

Pentzer continues to own other retail-related businesses and a California electronics manufacturing operation.

Pentzer President Richard Davis said the Creative Solutions sale was the culmination of a successful effort to build value by assembling companies in the same business.

“We are leaving the group with a very positive future,” he said. “It has strong management and great prospects for future growth.”

Avista Chairman Tom Matthews said the $50 million from the sale will be reinvested in new businesses under the Pentzer umbrella or that of Avista Capital.

Avista has been aggressively diversifying its business since Matthews became chairman July 1.

FAST FACT THE DEAL The sale of Creative Solutions, which includes a number of small companies around the United States, will bring in $50 million in cash for Avista Corp. The company plans to reinvest the money in new businesses.