Design Group Americas Receives Court Approval for Value-Maximizing Sale Transactions

Purchase Agreements Reached for Assets Across Sewing, Stationery, Gift, and Play Business Segments

Transactions Expected to Close By Year End

BERWICK, Pa.–(BUSINESS WIRE)–IG Design Group Americas, Inc. and its domestic subsidiaries (collectively, “DGA” or the “Company”) today announced that the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) has approved the sales of certain of the Company’s assets, across the Company’s Stationery, Gift, Sewing, and Play segments (the “Transactions”). Specifically, the Court approved the following Transactions:

• The sale to WIPHA Holdings, LLC of certain assets in both DGA’s ‘Gift’ and ‘Stationery’ business segments including Berwick poly ribbon and bows, Paper Magic Group, and Blumenthal, ensuring ongoing operations at the Company’s Berwick facility;
• The sale to the existing management of the Company’s ‘Patterns’ business, in partnership with Rubelmann Capital, of certain assets related to the Patterns business within the ‘Sewing’ business segment;
• The sale to Advantus Corp. of certain assets in the ‘Play’ and ‘Sewing’ business segments, including Anker Play Products, Perler, Eureka, Stickerfitti, Dudley’s, Boye, Dimensions, and Paintworks;
• The sale to Carousel Worldwide of certain assets in the ‘Stationery’ business segment including the Lang dated products and calendar business;
• The sale to CBC Group, Inc. of certain assets in the ‘Stationery’ business segment, including the C.R. Gibson and The Gift Wrap Company brands; and
• The sale to American Greetings Corporation of certain machinery, equipment, and other assets used to manufacture and distribute gift wrap located at the Company’s Byhalia, MS facility.

“We are pleased with the results of the marketing and sale process as we reached value-maximizing transaction agreements that will allow certain areas of our business to continue operating under new ownership,” said Sue Buchta, Chief Executive Officer. “These agreements demonstrate the importance of our various business segments and create an opportunity for these brands to thrive going forward. I am deeply grateful for the support of our employees and partners throughout this process.”

“Following a comprehensive, court-supervised marketing and sale process, we have determined that this outcome represents the best path forward to maximize value for DGA’s assets and minimize disruption for the Company’s valued customers and partners,” said Brett Anderson, Chief Strategy Officer. “The Court’s approval of these transactions affirms months of careful planning and constructive engagement with interested parties and sets the stage for a smooth transition.”

The Company will work with the buyers to transition ownership of the businesses and/or related assets in connection with the closing of the Transactions, all of which are expected to occur by year end, subject to customary closing conditions. DGA remains focused on serving its customers during these transitions.

Additional information on DGA’s ongoing Chapter 11 process is available at https://cases.ra.kroll.com/DGA. Stakeholders with questions may call the Company’s claims agent Kroll, toll-free at (877) 307-2977 (U.S. and Canada) or (646) 290-6127 (International), or email at dgateam@ra.kroll.com.

Advisors

Latham & Watkins LLP is serving as legal counsel, Huron Consulting Group LLC is serving as financial advisor, Huron Transaction Advisory LLC is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to DGA.

About DGA

Design Group Americas (DGA) is a diverse group of companies operating across multiple regions, categories, seasons, and brands. DGA products are found in retail outlets internationally, with products reaching millions of consumers of all ages. Design Group Americas creates, designs, and manufactures products that help the world celebrate life’s special occasions. They are proud to serve the best retailers around the globe with a complete end-to-end service from design to distribution.

Contacts

Media
designgroup@thecstreet.com