AG bolsters position in humorous, alternative cards

MMR, Jan 26, 2009

CLEVELAND -- American Greetings Corp. has reached an agreement to acquire Recycled Greetings Inc.

A Chicago-based creator and designer of humorous greeting cards, Recycled Greetings has annual net sales of about $80 million.

Under terms of the agreement, a so-called "prepackaged" Chapter 11 reorganization subject to approval by a federal bankruptcy court in Chicago, American Greetings will issue $54.7 million of new 7.375 notes due in 2016.

The acquisition strengthens American Greetings' humor and alternative card greeting card offerings. "This acquisition will be an excellent addition to our current product offering," says Zev Weiss, American Greetings chief executive officer, "and it gives us enlarged product design capability and a compelling product offering."