CSS Industries, Inc. Announces Acquisition of Substantially All of the Assets of Lawrence Schiff Silk Mills, Inc. Out of Bankruptcy
By Business Wire News
By Business Wire News
PLYMOUTH MEETING, Pa.
CSS Industries, Inc. (NYSE: CSS) announced today that it has completed the acquisition of substantially all of the assets of Lawrence Schiff Silk Mills, Inc. (“Schiff”). Schiff was a leading U.S. manufacturer and distributor of narrow woven ribbon prior to its April 2016 Chapter 11 bankruptcy filing. The sale of Schiff to CSS was recently approved by the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. CSS will not be operating the Schiff business, and will be relocating certain acquired Schiff equipment and inventory to CSS’ existing facilities. The transaction reflects the Company’s strategy of growing its business through strategic acquisitions.
“We have admired the Schiff business for many years,” said Christopher J. Munyan, CSS’ President and Chief Executive Officer. “With this acquisition, we gain unique weaving capabilities in our U.S. facilities. We also look forward to working with some of Schiff’s long-standing customers, some of which are new to us, to continue to supply them with superior, U.S. made product.”
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, classroom exchange Valentines, infant products, journals, 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.
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 the Company’s strategy of growing its business through strategic acquisitions, the Company’s acquisition of unique weaving capabilities, and the opportunity to supply some of the Schiff customers. 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, risks associated with the acquisition of the Schiff business, including the risk that the Company may not be able to successfully manage and integrate the Schiff business and/or obtain the accretive financial benefits currently expected from the acquisition of the Schiff business; risks associated with the Company’s acquisition strategy, including risks associated with identifying suitable acquisition candidates, acquiring acquisition candidates on commercially reasonable terms, and successfully managing and integrating acquired businesses; 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; 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, 2016 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.
CSS Industries, Inc.
Vincent A. Paccapaniccia
Chief Financial Officer