Julie O’Dell
Hallmark Cards, Inc.
(816)274-5961
HALLMARK ACQUIRES DAYSPRING
KANSAS CITY, Mo., July 21, 1999... Hallmark Cards, Inc. today announced that it has acquired DaySpring Cards, Inc., a leading creator of Christian personal expression products, from Cook Communications Ministries. Financial terms of the agreement were not disclosed. DaySpring products feature a non-denominational, evangelical Christian message. The company holds a strong position in the Christian retail channel where it is the primary greeting card supplier for most of the nearly 5,000 U.S.-based Christian bookstores. Each year, the company publishes more than 150 million cards and, for the fiscal year ending May 1999, DaySpring recorded sales of $52 million.
“Although Hallmark has created products for Christian consumers for decades, we are fortunate to acquire DaySpring because its product lines closely complement our current efforts,” said Don Fletcher, president of Hallmark’s North American personal expression business. “DaySpring has built a dynamic organization by executing a successful business strategy and by paying careful attention to the preferences of the Christian consumer.”
DaySpring products are sold to more than 10,000 retail outlets worldwide, including 5,000 Christian bookstores, card and gift stores and mass merchants. DaySpring’s product line includes more than 5,000 SKUs and marketing efforts are focused on three major brands. These include DaySpring® Cards and related personal expression products; Joyfully Yours® inspirational greeting cards for the mass channels; and the MasterPeace Collection® of fine art prints and sculptures.
“The Christian bookstore market is growing at a double-digit rate annually of 12 percent,” added Fletcher. “Hallmark continues to explore and research unique opportunities for growth in new product areas and consumer sectors of domestic and international markets. This acquisition will benefit both Hallmark and DaySpring as we work together to identify synergies and new ways to serve retailers and consumers while improving revenue and controlling costs.”
“This is certainly a mutually beneficial opportunity for DaySpring and Hallmark Cards, but most importantly for the Christian consumer,” says James Barnett, division director at DaySpring. “We will continue to focus on serving Christian retail stores by providing Christians with tools of communication that express God’s heart in fresh, new ways.”
DaySpring was founded in 1971, and was acquired by Colorado Springs-based Cook Communications Ministries in 1986. Headquartered in Siloam Springs, Arkansas, the company employs 400 people. Barnett will serve as president, DaySpring, and the company will operate as a wholly owned subsidiary of Hallmark.
Kansas City-based Hallmark is known throughout the world for its greeting cards, related personal expression products, and television’s most honored and enduring dramatic series, the Hallmark Hall of Fame. Through licensing leadership and joint ventures, Hallmark continues to expand its product formats and distribution avenues. The company, which has wholly owned subsidiaries in 12 countries, publishes products in 30 languages and distributes them in more than 100 countries. The company’s Hallmark Entertainment, Inc. subsidiary is the world’s leading producer of long-form television programming; its Binney & Smith subsidiary, maker of Crayola® crayons, is the leading producer of student and professional art materials.
