Jostens OKs Investcorp Buyout Offer

Jostens Inc., the largest U.S. maker of yearbooks, class rings and achievement awards, accepted a buyout offer of about $850 million in cash from a company controlled by Investcorp. The takeover group, which includes Jostens management, would pay $25.25 a share, 38% over Monday’s closing price, and assume about $100 million in Jostens debt. Shares in Jostens rose $5.94, or 32%, to close at $24.25 in NYSE trading. The stock has lost more than a third of its value this year on concern about high costs and slack sales. Jostens also said it will cut about 100 jobs, or about 1.5% of its work force. Investcorp, based in Bahrain, was formed by a former Chase Manhattan Corp. Middle East banking team in 1982. The buyout would make Jostens 94%-owned by Investcorp, senior Jostens management and DB Capital Partners, an affiliate of Deutsche Bank. The company would keep its headquarters in Minneapolis.