Companies reach definitive settlement of litigation
relating to Cookie Jar's acquisition of DIC Entertainment
CLEVELAND and TORONTO, July 23 /PRNewswire-FirstCall/ -- American
Greetings Corporation (NYSE: AM) and Cookie Jar Entertainment announced today
a transaction through which Cookie Jar will acquire from American Greetings
the Strawberry Shortcake and Care Bears properties for $195 million. The
announcement was made by Cookie Jar CEO Michael Hirsh and Josef Mandelbaum,
CEO Intellectual Property Group at American Greetings.
Since being re-introduced in 2002, Strawberry Shortcake and the Care Bears
have generated more than $5 billion combined in retail sales of licensed
product. As part of the deal, Cookie Jar will acquire the rights to Sushi
Pack, a new property created by Studio Espinosa and co-produced by American
Greetings and DIC Entertainment. Additionally, Cookie Jar granted American
Greetings a 10-year exclusive inbound licensing agreement for social
expression products on all three properties.
"When Cookie Jar was founded we wanted to become an international power in
children's entertainment programming," said Cookie Jar's CEO Michael Hirsh.
"We have been filling Cookie Jar with great properties such as Caillou,
Arthur, Johnny Test and The Doodlebops. The acquisition of DIC and now
Strawberry Shortcake and Care Bears makes us the fastest-growing independent
player in the industry." (NOTE TO EDITORS: DIC acquisition announced today in
a separate press release.)
Josef Mandelbaum from American Greetings added, "Strawberry Shortcake and
Care Bears have been synonymous with American Greetings for more than 25 years
and are beloved by all. We are very confident that Cookie Jar will be able to
take these two properties to new heights. This is a great outcome for our
company and shareholders that has allowed us to realize significant value from
all of our past efforts in these properties."
With the sale, American Greetings Properties -- the entertainment and
licensing division of American Greetings - will continue its efforts further
developing the licensing, marketing and promotional programs for its other
franchises. These include the greeting card sensation Twisted Whiskers, 80's
gross out sensation Mad Balls, Holly Hobbie, TinPo and its new preschool
property Maryoku Yummy.
This acquisition, subject to customary closing conditions, is scheduled to
close September 30, 2008.
Cookie Jar and American Greetings also announced that all litigation
involving DIC Entertainment Holdings, Inc. (DIC), the licensing agreement
between American Greetings and DIC for Strawberry Shortcake, and Cookie Jar's
acquisition of DIC has been dismissed.
About American Greetings Corporation
American Greetings Corporation (NYSE: AM) is one of the world's largest
manufacturers of social expression products. Along with greeting cards, its
product lines include gift wrap, party goods, stationery, calendars,
ornaments, electronic greetings, personalized digital photo products and
properties like Holly Hobbie, Twisted Whiskers, Madballs, Popples and Maryoku
Yummy. Located in Cleveland, Ohio, American Greetings generates revenue of
approximately $1.8 billion. For more information on the Company, visit
http://corporate.americangreetings.com
About The Cookie Jar Group
The Cookie Jar Group ( http://www.thecookiejarcompany.com ) is a
Canadian-based, privately-held entertainment and education company focused on
providing compelling programming and materials for children. Cookie Jar's
private equity sponsors are Birch Hill Equity Partners and OMERS Capital
Partners. Cookie Jar Entertainment Inc. and DIC Entertainment Holdings, Inc.,
the entertainment arms of Cookie Jar, are leading, global, independent
producers, brand managers, marketers and distributors of such renowned
children's properties as "The Doodlebops", "Caillou", "Hurray For Huckle!",
"Johnny Test", "Magi-Nation", "Inspector Gadget", "Strawberry Shortcake",
"Horseland", "Sabrina", "Madeline", "Liberty's Kids", "Sonic The Hedgehog" and
"Care Bears". Through DIC, Cookie Jar is the worldwide licensor or agent for
brands such as "McDonald's", "Strawberry Shortcake", "Madeline", "Mommy & Me",
"The Beginner's Bible" and "Eloise".
Forward-Looking Statements
Certain statements in this release pertaining to American Greetings (the
"Company") may constitute forward-looking statements within the meaning of the
Federal securities laws. These statements can be identified by the fact that
they do not relate strictly to historic or current facts. They use such words
as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"
and other words and terms of similar meaning in connection with any discussion
of future operating or financial performance. These forward-looking statements
are based on currently available information, but are subject to a variety of
uncertainties, unknown risks and other factors concerning the Company's
operations and business environment, which are difficult to predict and may be
beyond the control of the Company. Important factors that could cause actual
results to differ materially from those suggested by these forward-looking
statements, and that could adversely affect the Company's future financial
performance, include, the sale of the Strawberry Shortcake and Care Bears
properties. In addition, this release contains time-sensitive information that
reflects management's best analysis as of the date of this release. American
Greetings does not undertake any obligation to publicly update or revise any
forward-looking statements to reflect future events, information or
circumstances that arise after the date of this release. Further information
concerning issues that could materially affect financial performance related
to forward-looking statements can be found in the Company's periodic filings
with the Securities and Exchange Commission, including the "Risk Factors"
section of the Company's Annual Report on Form 10-K for the fiscal year ended
February 29, 2008.
SOURCE American Greetings Corporation
CONTACT: Jeffrey Klein, Dan Klores Communications, +1-212-981-5189,
jeff_klein@dkcnews.com; Brook Hefner, Public Relations Manager,
+1-323-297-0065, bhefner@thecookiejarcompany.com; or Alex Radmanovich, PELICAN
Public Relations, +1-514-845-2949, aradman@rppelican.ca, both for Cookie Jar
Entertainment
Web site: http://www.americangreetings.com
http://corporate.americangreetings.com
http://www.thecookiejarcompany.com
(AM)
