CSS Industries provides gift packaging items such as ribbons, bows, bags and wrap
Gift packaging firm IG Design has acquired CSS Industries (Credit: Akshay93 from Pixabay)
UK-based gift packaging company IG Design Group announced that its subsidiary has agreed to acquire CSS Industries in an all-cash transaction worth around $88m.
As per terms of the merger deal, IG Design Group’s subsidiary will launch a cash tender offer to acquire all of the outstanding shares of CSS common stock for $9.40 per share.
CSS Industries, a creative consumer products company, serves customers in the craft, gift and seasonal categories.
Under the gift category, the company provides its customers with packaging items such as ribbons, bows, bags and wrap, as well as stationery, baby gift items, and party and entertaining products.
As part of the seasonal category, CSS offers holiday gift packaging items such as ribbons, bows, bags, tags and gift cardholders, as well as holiday-themed decorations and activities such as Easter egg dyes and Valentine’s Day classroom exchange cards.
Under the craft category, the company provides products such as sewing patterns, ribbons, trims, buttons, needle arts and kids’ crafts.
IG Design Group CEO comments on the acquisition
IG Design Group CEO Paul Fineman said: “The acquisition significantly enhances the portfolio of products, brands and services that we offer to our global customer base of ‘winning’ retailers, as well as providing access to many new channels and markets.”
Subject to customary closing conditions, the deal is expected to be completed during CSS’ current fiscal quarter that will end on 31 March this year.
CSS will be included in the IG Design Group’s Design Group Americas business, once the deal is completed.
On the transaction, Guggenheim Securities is serving as the financial advisor to CSS, while Morgan, Lewis and Bockius is acting as CSS’ legal advisor. Pepper Hamilton is acting as the special counsel to the special committee of the CSS Board.
Canaccord Genuity is serving as the financial advisor to IG Design Group on the transaction, while Seyfarth Shaw is acting as IG Design Group’s US legal advisor.
CSS Industries president and CEO Christopher Munyan said: “We have known Paul and his team for many years, and we believe that there is a strong cultural fit between the two organisations.
“CSS’ vision, values and culture are closely aligned with those of Design Group, including their focus on expanding into complementary categories and growth through acquisition.”
IG Design Group designs and manufactures products that are marketed in more than 210,000 retail outlets, including Walmart, Tesco, Amazon, Carrefour and Aldi.
Earlier this month, retail products and solutions provider Mainetti Group acquired US-based branding and packaging solutions provider, The Star Group, for an undisclosed sum.