American Greetings to Sell Party Business to Amscan
By Staff -- Gifts & Decorative Accessories, 12/22/2009 8:32:00 AM
Cleveland, OH – Greeting card manufacturer American Greetings Corp. will sell its inventory, equipment and processes used in the manufacture and distribution of party goods to Elmsford, NY-based Amscan Inc., which makes party goods as well as gifts.Amscan is expected to pay about $25 million, and to give American Greetings a warrant to purchase approximately 2 percent of the Class A Common Stock of AAH Holdings Corp., Amscan's parent company.
American Greetings will wind down its manufacturing of party goods products. Instead, through this strategic alliance, the company will source its party goods from the broad range of licensed and non-licensed offerings of Amscan and continue to distribute them to the mass, drug, grocery and specialty retail channels. Amscan will have exclusive rights to manufacture and distribute products into the party store channel, among others.
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