Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Commission dismisses administrative challenge to class ring company combination, (May 8, 2014)

By Jeffrey May, J.D.

Because Jostens, Inc. abandoned plans to acquire American Achievement Corporation (AAC) after the FTC took action to block the combination of the high school and college class ring sellers last month, the Commission has now dismissed the action. Agency lawyers and the parties had jointly moved for dismissal on April 25 (In the Matter of Visant Corp., FTC Dkt. 9362, File No. 141-0033).

Shortly after the FTC issued its administrative complaint, Visant Corporation and its Jostens subsidiary terminated the Stock Purchase Agreement between themselves and AAC. Because the relief sought in the complaint had been accomplished, there was no need for further administrative litigation, the Commission concluded.

The agency had challenged the deal on the grounds that a combined Jostens/AAC would have controlled an unduly high percentage of the high school and college class ring markets, making it a dominant firm with only one smaller meaningful competitor in both markets. Jostens’ acquisition of AAC would have eliminated head-to-head competition between the two companies, allowing the combined firm to raise prices, while reducing the incentives to provide better quality and service to students and making it easier for the two remaining competitors to coordinate, the FTC contended.

In addition to selling class rings, Jostens distributes school yearbooks and other scholastic products. American Achievement is the parent company of class ring suppliers Balfour and ArtCarved, as well as other commemorative jewelry and recognition product distributors.

Attorneys: Edward Hassi for FTC. Molly Boast (Wilmer Cutler Pickering Hale and Dorr LLP) for American Achievement Corp. Joseph Tringali (Simpson Thacher & Bartlett LLP) for Visant Corp.

Companies: American Achievement Corp., Jostens, Inc., Visant Corp.

News: Antitrust FederalTradeCommissionNews