NEW YORK, April 3, 2001 - Castle Harlan, Inc., the New York-based merchant bank, announced today that Commemorative Brands Holding Corp., one of the nation's leaders in class rings and yearbooks, has acquired Educational Communications, Inc., the leading publisher of directories that recognize academic achievement. Terms of the transaction were not disclosed.
Educational Communications, located in Lake Forest, Illinois, publishes Who's Who Among American High School Students, The National Dean's List and Who's Who Among America's Teachers. The company also conducts "The Annual Survey of High Achievers," an authoritative and frequently cited source for journalists and others seeking information about outstanding teenagers.
In addition, for many years it has provided funding for 250 annual $1,000 scholarships to outstanding students, and it makes grants to enable guidance counselors to attend professional workshops."
ECI was founded in 1966 by Paul Krouse and his wife, Ann, who will remain with the company. Paul Krouse will continue as president and Ann Krouse as executive vice president.
Commemorative Brands, based in Austin, Texas, manufactures and sells class rings under the Balfour and ArtCarved brands, as well as championship rings, consumer sports and family jewelry and diplomas and graduation announcements. The company was acquired in December 1996 by a private equity investment fund organized and managed by Castle Harlan.
Commemorative Brands also is a leading publisher of high school and college yearbooks under the Taylor Publishing name. A Castle Harlan investment fund acquired Taylor Publishing early last year, and it was merged into Commemorative Brands in July.
David Fiore, president and chief executive officer of Commemorative Brands, said the acquisition of Educational Communications "brings an important new dimension to the products we are able to offer the academic community."
"The quality of ECI's publications, the excellence of its operations and the company's high level of integrity," Fiore said, "are a perfect reflection of the attributes Commemorative Brands has brought to the scholastic market for many, many years."
"We also know that we will find valuable synergies in the operations of the two companies as the combination goes forward."
Krouse said he and his wife believe they have found the "good home" they have been seeking for the company they have been nurturing for 35 years.
"The culture and the chemistry of the two companies are an outstanding match," he said. "We are confident that our managers and our employees will feel welcome and comfortable in this new relationship and enthusiastic about the opportunities that our tie with Commemorative Brands will bring."
Equity financing for the transaction was provided by Castle Harlan Partners III, L.P., a $630 million private equity investment fund organized and managed by Castle Harlan.
David Pittaway, a Castle Harlan managing director, said the firm saw significant growth opportunities ahead for ECI. He noted that each of its publications is the leader in its market.
In addition, he said, "the company has the most comprehensive access to extensive and relevant information about today's high school and college students and teachers. This will be of substantial value to our other scholastic commemorative products."
Additional information on ECI is available at the company's Web Site, www.honoring.com.
Since its founding in 1987, Castle Harlan has completed acquisitions exceeding $4.5 billion. Its portfolio companies include Marie Callender's Restaurant and Bakery, a chain of family restaurants best known for its freshly baked pies, and Worldwide Flight Services, the leading global provider of ground services to the aviation industry.
Castle Harlan funds also own Gravograph Industrie International, the world's leading maker and seller of machines, accessories and materials used in the engraving industry, and Universal Compression, a leader in the natural gas compression business.
Castle Harlan was founded by John K. Castle, an early pioneer of institutionalized private equity investing and the former president and chief executive officer of Donaldson, Lufkin & Jenrette, Inc., and by Leonard M. Harlan, founder and former chairman of The Harlan Company, a diversified real estate and corporate finance advisory firm.