PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)--CSS Industries, Inc. (NYSE: CSS), a leading consumer products company within the seasonal, celebrations and craft markets, today announced that it has completed the acquisition of Simplicity Creative Group from Wilton Brands LLC for $64 million in cash, subject to certain closing and post-closing adjustments.
Simplicity is a leading provider of home sewing patterns, decorative trims, knitting and crocheting tools, needle arts and kids’ crafts products under the Simplicity®, Wrights®, Boye®, Dimensions®, and Perler® brand names. Simplicity’s products are sold to mass-market retailers, specialty fabric and craft chains, wholesale distributors and online customers.
“A key component of our strategy is to strengthen and expand our portfolio in core markets through new product development and complementary acquisitions,” said Christopher J. Munyan, CSS President and Chief Executive Officer. “Simplicity’s pattern business is the perfect complement to our recently acquired McCall business, and the other product lines expand our reach into adjacent markets such as kids’ crafts and needle arts. Simplicity has built a strong portfolio of well-established brands in the craft industry, and we welcome their talented team to CSS.”
The Company expects the acquisition of Simplicity to provide a number of strategic benefits including: 1) establishing CSS as the leader in home sewing patterns; 2) expanding the Company’s Offray® brand ribbon and trim assortment with the addition of Wrights® trims, tapes and braids; 3) adding a complementary portfolio of established core crafts brands including Boye®, Perler® and American Girl Crafts®; 4) increasing the Company’s presence in the large and growing kids’ crafts market; 5) providing synergies in the areas of product development, licensing, manufacturing, distribution, information technology and online marketing; and 6) extending Simplicity’s reach by leveraging the Company’s more expansive customer base.
Simplicity generated sales and EBITDA of approximately $90 million and $10 million, respectively, over the past twelve months. The Company expects to achieve annualized synergies of $4 to $5 million by the third fiscal year after closing. The Company financed the transaction primarily with borrowings from its existing credit facility.
The Company was advised by D.A. Davidson & Co. on this transaction.
The Company plans to discuss the transaction in more detail during its second quarter earnings conference call scheduled for November 8 at 8:30 a.m. The conference call details can be found in a press release issued earlier or on the Company’s website at www.cssindustries.com.
About CSS Industries, Inc.
CSS is a consumer products company within the seasonal, celebrations and craft markets that is primarily engaged in the design, manufacture, procurement, distribution and sale of seasonal, celebrations and craft products, principally to mass market retailers. These products include craft ribbon and buttons, packaging ribbon and bows, sewing patterns, classroom exchange Valentines, infant products, journals, fashion buttons, boxed greeting cards, gift tags, gift card holders, gift bags, gift wrap, decorations, floral accessories, craft and educational products, Easter egg dyes and novelties, memory books, scrapbooks, stickers, stationery, and other items that commemorate life’s celebrations.