Topps Ends Possible Sale Process and Completes Strategic Review
The Topps Company, Inc. (TOPP) announced today that the previously disclosed process
to evaluate a possible sale of its confectionery business has been terminated. The process,
conducted with the assistance of outside advisors, took nearly seven months to conclude.
Levels of interest by prospective purchasers during that time were not commensurate with
the Board's valuation of the asset.
Arthur T. Shorin, Chairman and CEO commented, "Our Board remains committed to maximizing
shareholder value. As such, simultaneous with exploring a possible transaction, management
completed its work with outside consultants on a comprehensive strategic review aimed at
improving top and bottom line performance of the domestic confectionery and entertainment
businesses.
"Actions to implement results are well underway. Among them, the confectionery and
entertainment organizations will operate independently to the extent practical. We are
also streamlining reporting relationships and eliminating certain upper and middle
management positions. After accounting for nearly $900,000 of headcount additions for
marketing and new product development, principally directed at top line growth, we expect
the net personnel related cost savings to be approximately $2.5 million annually. Work is
also in progress to reduce non-personnel related costs."
Mr. Shorin concluded, "We are optimistic about the future. We view these and other
changes as important steps in an ongoing process of improvement, and look forward to
communicating further on our second quarter investor conference call scheduled for September
28."
Founded in 1938, Topps is a leading creator and marketer of distinctive confectionery and
entertainment products. The Company's confectionery brands include "Ring Pop,"
"Push Pop," "Baby Bottle Pop" and "Juicy Drop Pop" lollipops
as well as "Bazooka" bubble gum. Topps entertainment products include trading cards,
sticker album collections, and collectible games. For additional information, visit
www.topps.com.
Source: The Topps Company, Inc.
Date: September 12, 2005
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