Elmsford, NY (June 4, 2007) - AAH Holdings Corporation (“AAH”) announced today that it has completed the acquisition of Gags & Games Inc. (“Gags & Games”), a leading retailer of Halloween and party goods. Gags & Games operates a chain of approximately 20 party superstores in Michigan and Ohio under the trade name Party USA. In addition, Gags & Games has operated a chain of temporary Halloween stores throughout the Midwest for over 25 years, the last 15 years under the trade name Halloween USA.
In connection with the acquisition, AAH acquired all of the outstanding common stock of Gags & Games in exchange for AAH common stock and cash totaling $5.0 million. AAH also repaid $3.1 million of Gags & Games debt at closing. The acquisition agreement provides for the payment of additional consideration through 2011, contingent upon Gags & Games achieving certain annual levels of cash flow, as defined.
As a result of the Gags & Games acquisition, AAH now has more than 770 company-owned and franchise party superstores. Additionally, AAH will now have one of the largest chains of temporary Halloween stores, as well.
“The acquisition of Gags & Games further strengthens our retail party business and positions the Company to capitalize on the exciting growth opportunities we see in the temporary Halloween retailing market,” said Gerry Rittenberg, Chief Executive Officer of AAH.
ABOUT AAH HOLDINGS CORP.: Through its subsidiary Amscan Holdings, Inc., AAH Holdings Corporation designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery. In December 2005 and September 2006, Amscan Holdings, Inc. acquired Party City Corporation and PA Acquisition Corp. (doing business as Party America Corporation), two leading retailers of party goods that currently operate more than 430 company-owned stores and have approximately 320 franchise stores in the United States. For more information, visit www.amscan.com, www.partycity.com and www.partyamerica.com.
ABOUT BERKSHIRE PARTNERS: Berkshire Partners has invested in mid-sized private companies for more than 20 years through seven investment funds with aggregate capital commitments of approximately $6.5 billion. Berkshire seeks companies with acquisition values between $200 million and $1.5 billion and in a given transaction makes equity investments of approximately $50 million to $350 million. Berkshire has developed specific industry experience in several areas, including retailing and related services, consumer products, business services, manufacturing, transportation and communications. The firm's transactions have included leveraged acquisitions, growth equity investments, and turnarounds. Over the past two decades, Berkshire has been an investor in over 90 operating companies with more than $19 billion of acquisition value and combined revenues in excess of $21 billion. For additional information, visit www.berkshirepartners.com.
ABOUT WESTON PRESIDIO: Founded in 1991, Weston Presidio is a private equity firm that has raised approximately $3.3 billion of capital through five investment funds to support growth equity investments, management buyouts and recapitalizations. With offices in Boston, San Francisco, and Menlo Park, Weston
Presidio has worked side by side with world-class management teams throughout North America. Weston Presidio has a multi-industry investment strategy that has allowed the firm’s partners to work with over 300 portfolio companies in a variety of industries including consumer products and retail, manufacturing and industrial, media, service and technology. For more information, visit www.westonpresidio.com.