(By Balaseshan) CSS Industries Inc. (NYSE:CSS) said it has sold the Halloween portion of its Paper Magic Group Inc. (PMG) business to Gemmy Industries (HK) Ltd.
Under the terms of the purchase agreement, Gemmy acquired, upon execution of the agreement, certain tangible and intangible assets associated with PMG's Halloween business.
As a result of this transaction, CSS expects to incur pre-tax charges, net of proceeds, in a range of about $6.0 million to $7.6 million.
CSS said it will finish its commitments to customers for the Halloween 2012 season, and that Gemmy will provide Halloween products for the Halloween 2013 season and thereafter.
As part of the transaction, PMG will remain responsible for the manufacture, sale and distribution of all PMG Halloween products (such as Halloween masks, costumes, make-up and novelties) for the Halloween 2012 season.
"As part of a continuing review of our PMG seasonal business, we decided that the sale of PMG's Halloween business was appropriate at this time, as it will allow management to focus our time and resources on more profitable product categories," said Christopher Munyan, Chief Executive of CSS Industries.
Stifel Nicolaus Weisel served as exclusive financial advisor to CSS in the transaction.
CSS is trading up 1.10% at $20.64 on Thursday. The stock has been trading between $15.19 and $22.40 for the past 52 weeks.