CSS Industries, Inc. (NYSE: CSS) announced that its Berwick Offray LLC company has completed the acquisition of substantially all of the business and assets of Hollywood Ribbon Industries, Inc. (“Hollywood Ribbon”). Hollywood Ribbon designs, manufactures, distributes and sells ribbon, bows and similar products to mass market retailers and national grocery, drug store, party and craft and discount chains. The business will be combined with Berwick Offray’s existing manufacturing and distribution facilities located in the Berwick, Pennsylvania area. Pre-tax transaction and one time transition costs totaling approximately $1,300,000, or $0.09 per diluted share, are expected to be incurred in the Company’s fiscal quarter ending March 31, 2015. The Company expects the transaction to be accretive to earnings per diluted share for the Company’s fiscal year ending March 31, 2016.
“We welcome Hollywood Ribbon’s customers and vendors to the CSS family of companies. Hollywood Ribbon’s products and markets are highly complementary with the ribbon and bow business of Berwick Offray. We plan to continue to support the Hollywood Ribbon product line,” said Christopher J. Munyan, President and Chief Executive Officer of CSS.
CSS is a consumer products company primarily engaged in the design, manufacture, procurement, distribution and sale of all occasion and seasonal social expression products, principally to mass market retailers. These all occasion and seasonal 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, 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.
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including, among others, statements relating to expected future earnings and financial performance resulting from the Company’s acquisition of substantially all of the business and assets of Hollywood Ribbon Industries, Inc., and the future operations of the business. Forward-looking statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company’s management as to future events and financial performance with respect to the Company’s operations. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they were made. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including without limitation, general market and economic conditions; increased competition (including competition from foreign products which may be imported at less than fair value and from foreign products which may benefit from foreign governmental subsidies); increased operating costs, including labor-related and energy costs and costs relating to the imposition or retrospective application of duties on imported products; currency risks and other risks associated with international markets; risks associated with acquisitions, including acquisition integration costs; risks associated with the acquisition by the Company of substantially all of the assets of Hollywood Ribbon Industries, Inc., including the risk that the Company will incur additional acquisition integration costs not currently expected and the risk that the Company may not be able to integrate and derive the expected benefits from such acquisition; the risk that customers may become insolvent, may delay payments or may impose deductions or penalties on amounts owed to the Company; costs of compliance with governmental regulations and government investigations; liability associated with non-compliance with governmental regulations, including regulations pertaining to the environment, Federal and state employment laws, and import and export controls and customs laws; and other factors described more fully in the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2014 and elsewhere in the Company’s filings with the Securities and Exchange Commission. As a result of these factors, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company.
Source: CSS Industries, Inc.
