AG wraps two festive purchases

Drug Store News, Sept 13, 2000

CLEVELAND -- July was a busy month at American Greetings. The company completed two acquisitions during the month, including the purchase of CPS Corp., a Franklin, Del.-based supplier of gift-wrap and decorative packaging. The deal, terms of which were not disclosed, was finalized July 13.

American Greetings also acquired M&D Industries, the country's second-largest supplier of mylar balloons. That deal was completed July 25. M&D, which is based in the Chicago area, has since become part of American Greeting's Balloon Zone strategic business unit. M&D holds several popular licenses, including a full line of Disney characters, and also operates state-of-the-art manufacturing and distribution facilities, according to American Greetings.

Mark Van Dyke, a 23-year veteran of the balloon industry, has been named executive director of M&D. He reports to Zev Weiss, vice president of strategic business units.

With the CPS deal, American Greetings is expecting to complement Plus Mark, its seasonal gift-wrap and boxed greeting card unit. The acquisition should be "modestly additive to earnings in the current fiscal year," the company reported in a statement.

"The acquisition of CPS is a significant growth opportunity for Plus Mark," said Morry Weiss, chairman and chief executive. "It gives Plus Mark an even broader array of creative products, and the state-of-the art facilities in Kentucky and Tennessee ensure we have the capacity to serve our combined retail partners as we grow this time-sensitive seasonal business.'"

In addition to a strong product line and customer base, CPS owns manufacturing and distribution facilities totaling 1.7 million square feet.