Amscan announces strategic alliance with American Greetings

ELMSFORD, N.Y. Amscan Holdings announced Wednesday a strategic alliance with American Greetings, the manufacturer and retailer of innovative social expression products.

As part of the alliance, Amscan acquired inventory, equipment and processes used by American Greetings in the manufacture and distribution of party goods. Amscan will have exclusive rights to manufacture and distribute products into various channels, including the party store channel. American Greetings will now source party goods from Amscan and will continue to distribute party goods to various channels, including to its mass, drug, grocery and specialty retail customers.

In connection with the transaction, American Greetings received cash of $24.88 million and a warrant to purchase approximately 2% of the Common Stock of AAH Holdings Corp., Amscan's ultimate parent corporation.

Gerry Rittenberg, Amscan's CEO said, "We are excited by the opportunities that this new alliance with American Greetings provides. The strength of our two organizations will enable us to better serve the broad retail market."