CSS Industries, Inc. (NYSE: CSS) announced today that it has sold the Christmas gift wrap portion of its Cleo Inc (“Cleo”) business to Impact Innovations, Inc. (“Impact”). Under the terms of a definitive agreement executed by the parties, Impact acquired, upon execution of the agreement, certain tangible and intangible assets associated with Cleo’s Christmas gift wrap business. As part of the transaction, Cleo will remain responsible for the manufacture, sale and distribution of all Cleo Christmas gift wrap for the Christmas 2011 season, and will retain the right to use the “Cleo” name during the Christmas 2011 season. Stifel Nicolaus Weisel served as exclusive financial advisor to CSS in the transaction.
“As part of a continuing review of our Cleo gift wrap business, including our previously announced plan to close our manufacturing facility located in Memphis, Tennessee by no later than December 31, 2011, we decided that the sale of Cleo’s Christmas gift wrap business was appropriate at this time, as it will allow management to focus our time and resources on more profitable product categories,” said Christopher J. Munyan, President and Chief Executive Officer of CSS. “Impact is a highly respected provider of consumer décor and paper products, and we believe that Impact will provide seasonal gift wrap customers with quality products and support during the Christmas 2012 season and thereafter.”
“Because the closing of this transaction occurs as we are shipping Christmas 2011 gift wrap to our customers,” said Mr. Munyan, “we have agreed that CSS will continue to provide Cleo Christmas gift wrap to our customers for the Christmas 2011 season, and that Impact will provide Cleo Christmas gift wrap for the Christmas 2012 season and thereafter.”
CSS is a consumer products company primarily engaged in the design, manufacture, procurement, distribution and sale of seasonal and all occasion social expression products, principally to mass market retailers. These seasonal and all occasion products include decorative ribbons and bows, boxed greeting cards, gift tags, gift wrap, gift bags, gift boxes, gift card holders, decorative tissue paper, decorations, classroom exchange Valentines, floral accessories, Halloween masks, costumes, make-ups and novelties, Easter egg dyes and novelties, craft and educational products, stickers, memory books, stationery, journals, note cards, infant and wedding photo albums, scrapbooks, and other gift items that commemorate life’s celebrations.Impact Innovations, Inc. is a privately held consumer products company headquartered in Minnesota. Impact has showrooms in Tennessee and Hong Kong as well as manufacturing facilities in both the United States and China. Impact specializes in the seasonal product business in the mass market.