American Greetings Announces Acquisition of Assets of Clinton Cards
American Greetings Corporation (NYSE: AM) today announced that it has acquired assets, through a subsidiary in the United Kingdom ("UK"), from Clinton Cards PLC and certain of its subsidiaries ("Clinton Cards").
Clinton Cards, one of the largest specialty retailers of greeting cards in the UK, had approximately 750 stores and annual revenues of approximately $600 million before being placed into administration on May 9, 2012. As previously announced, through its UK subsidiary, American Greetings had acquired the senior secured debt of Clinton Cards for approximately $56 million. The legacy Clinton Cards business has been an important customer to American Greetings' international business for approximately forty years, and is one of American Greetings' largest customers.
The acquisition includes approximately 400 stores and related overhead as well as the Clinton Cards and related brands, representing approximately $315 million in annual revenues, or approximately $265 million excluding revenues generated from its sale of American Greetings products. The final number of stores acquired will be dependent on negotiations with landlords at each respective location. The other stores, assets and liabilities not acquired by American Greetings remain part of the administration process under the direction of the administrators, partners of Zolfo Cooper LLP ("Zolfo Cooper"). It is anticipated that the remaining assets will be liquidated and proceeds will be used to repay Clinton Cards' creditors, including American Greetings.
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