Jostens Agrees to Buy Rival in Commemorative Paraphernalia

New York Yankees/Associated Press  American Achievement Group’s brands include Balfour, which helped create this New York Yankees 2009 championship ring.

Jostens, a seller of yearbooks and class rings to students across the United States, is looking to gain a bigger piece of the business of school spirit.

The company has agreed to buy a rival, American Achievement Group, which sells rings, jackets and other commemorative paraphernalia, according to an announcement on Tuesday. The price was not disclosed, but a person briefed on the matter said it was about $500 million.

American Achievement, which sells its products under brands like Balfour, ArtCarved and Keepsake, is owned by the private equity firm Fenway Partners. The sale represents a return on capital of 2.4 times for Fenway, the person familiar with the matter said.

The deal is expected to close by the second quarter of next year â€" when high school and college students will be graduating.

Jostens, based in Minneapolis, also has private equity parents: It is a subsidiary of the Visant Corporation, which is owned by Kohlberg Kravis Roberts and a buyout unit of Credit Suisse.

Many private equity firms have been moving to sell companies to the investing public this year, with stock markets buoyant. But some are also doing what are known as secondary deals, when one private equity firm sells a business to another.

For American Achievement, the deal will give it yet another private equity owner. Fenway Partners bought the company in 2004 from Castle Harlan, a private equity firm that had owned it since 1996.

By joining with Jostens, American Achievement, is aiming to expand its reach.

“The combined company will be better positioned to maximize sales opportunities and capture operating efficiencies while better serving a growing customer base,” Steven Parr, the president and chief executive of American Achievement, said in a statement. “Jostens is the ideal partner to help preserve American Achievement’s rich history while simultaneously facilitating continued growth.”

Credit Suisse is providing loan financing to Visant and is acting as the bookrunner for the debt financing. K.K.R.’s capital markets unit assisted in placing the financing, the announcement said.

Simpson Thacher & Bartlett served as the legal adviser for Visant and Jostens, while Ropes & Gray and Wilmer Hale were the legal advisers for American Achievement and Fenway. Goldman Sachs was American Achievement’s financial adviser.