DUCTSFOR IMMEDIATE RELEASE
ENCORE GROUP PURCHASES
RUSS BERRIE GIFT DIVISION
WINSTON-SALEM, NC - December 23rd 2008 – The Encore Group, a diversified gift and specialty marketing company announces its purchase of the gift division of Russ Berrie & Company. Russ Berrie & Company is a publicly traded corporation (NYSE – RUS); The Encore Group is a privately held company with corporate offices in both Winston-Salem and San Diego, CA. Russ Berrie corporate offices are based in New Jersey.
The Encore Group is forming a new corporate entity featuring the Russ Berrie identity, with offices in the United States and five foreign countries: Canada, UK, Australia, China and South Korea, with subsidiaries in several smaller markets. The combined companies will market consumer gift products through multiple channels of distribution, with trade names appropriate to each channel.
Effective immediately, Encore Group will operate as Russ Berrie U.S. Gift, Inc. The company will sell products under the Russ name and have exclusive use of it, as well as all related names including Applause. The newly combined sales force will begin selling the Russ gift line immediately. Formal introduction of the new company will take place during upcoming January markets.
In making the announcement, Encore Chairman Eldridge (Redge) Hanes noted the synergies that make the acquisition beneficial for both companies.
“We believe this business is an excellent strategic fit for Encore with our complementary product lines and distribution channels,” said Hanes. “We anticipate significant cross-selling opportunities, as we integrate the expertise of Russ with plush product and international marketing with existing Encore focus on the hard goods giftware product. The creation of a new gift corporation featuring the Russ name and fueled with the joint dynamics of the Encore Group and traditions of Russ Berrie & Company will bring a vital new leader to the gift industry.”
The Encore Group was formed in 2000, with the merger of Living Stone®/Encore and XPRES® Corporation. The dedicated Encore sales force sells to multiple channels of distribution, including mass market, specialty gift retailers, catalog groups and online retailers. Today, the Encore Group brands include United Design®, Figi®, JW Stannard™, frame-ology®, XPRES®, Living Stone® and Michel & Co.® Encore sports licenses include NFL, NHL, MLB, NCAA and NASCAR. Lifestyle brands include Harley-Davidson®, Anheuser-Busch®, Disney®. John Deere & Co®, and Warner Bros.® characters. Licensed artists include Thomas Kinkade, Wyland, Lou Rankin, Keith Kimberlin and David Sands.
Russ Berrie & Company has been a major force in the gift business since its founding by the late Russell Berrie in 1963. The Russ trademark is synonymous with quality gift products that are sold worldwide, and its reputation for innovation and creativity have set the industry standard for product excellence. Russ purchased the Applause brand in 2004, adding this respected industry icon to its product offerings. Other licenses include Curious George®, Raggedy Ann & Andy®, Scooby Doo™, Corduroy™, and The Simpsons®, and expanded the Russ franchise from specialty markets to a broad range of distribution channels.
“Russ Berrie U.S. Gift, Inc., features a team of employees with unparalleled experience and professionalism,” added Redge Hanes. “Our new business is set to take its place as the leader in the gift industry.”
Financing for the transaction was provided by the Business Credit division of Wells Fargo Bank. Legal representation for The Encore Group was provided by the national law firm of Gordon and Rees LLC. which has its founding office in San Francisco, California.
For additional information, contact:
Pat Shaw - PCSA - (815) 334-9019 or E-mail: patcshaw@aol.com
http://www.russberrie.com
