Factory Card & Party Outlet soars on acquisition announcement

Shares of Factory Card & Party Outlet Corp. (Nasdaq: FCPO), a greeting card and party supplies retailer, are up after the firm announced before the opening it will be acquired by AAH Holdings Corp. for approximately $72 million.

Under the agreement, AAH will offer $16.50 per share in cash, premium of more than 100% from Monday’s closing price of $8.05. Both of the companies’ boards have approved the transaction.

Also before the opening, Naperville, Ill.-based Factory Card & Party Outlet reported second-quarter earnings of $2.3 million, or $0.65 per share, above Wall Street expectations of $0.57 per share. In 2006, the firm’s second-quarter earnings were $1.9 million, or $0.57 per share. Revenue for the three months ended August 4 dropped to $62.8 million, below analyst projections of $69.3 million and compared with $66.3 million in the same period of 2006. Same-store sales, which measures growth at existing retail stores, were flat for the quarter.

Shares of FCPO are soaring to a new year high—up 98.88%, or $7.96, at $16.01. Over the last 52 weeks, shares have ranged from $6.13 to $12.82.

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