Elliott Investment Management, Clayton, Dubilier & Rice (CD&R), and American Greetings Corporation (AG) announced an agreement under which Elliott will purchase a majority ownership stake in American Greetings. The terms of the deal were not disclosed.
Recognizing the tremendous opportunity ahead, CD&R and the Weiss family, descendants of Jacob Sapirstein, who founded the company in 1906, will maintain a significant minority ownership interest in American Greetings.
American Greetings is a creator, manufacturer, and distributor of physical and digital Celebration products worldwide with iconic brands, such as American Greetings, Papyrus, and Carlton Cards. And its digital business is a leading provider of digital greetings and premium Celebrations content through proprietary technology platforms and apps, with many popular digital brands, including American Greetings, Blue Mountain, Jacquie Lawson, SmashUps, and Creatacard. American Greetings partners with a wide range of leading global customers, such as grocery, mass, drug, dollar, and specialty retailers, to serve and delight consumers with innovative Celebration products, including greeting cards, gift packaging, party goods, and balloons. American Greetings, with its unique consumer-centric and holistic category approach supported by best-in-class consumer analytics, delivers frictionless Celebration shopping experiences for consumers wherever and however people wish to shop – online, in-store, or curbside pickup.
The deal is subject to customary closing conditions, including the receipt of regulatory approval, and is expected to close in the first quarter of 2025.
Elliott has obtained committed financing from Barclays, UBS Investment Bank and BofA Securities. And Davis, Polk & Wardwell served as legal advisor, and UBS Investment Bank served as financial advisor to Elliott in the transaction. Debevoise & Plimpton LLP served as legal advisor, and Centerview Partners and BofA Securities served as financial advisors to American Greetings.
KEY QUOTES:
“We are pleased to be partnering with the American Greetings management team, CD&R, and the Weiss family. As a leader in the Celebrations market in the United States, Canada, the UK, Australia, and New Zealand, American Greetings is ideally placed to drive the category, helping people to connect and celebrate life’s moments. Elliott has significant experience investing in the consumer sector, including our stewardship of Barnes & Noble and Waterstones, and we are pleased to bring this experience to bear in supporting American Greetings through its next chapter of growth.”
- Paul Best, Senior Managing Director and Head of European Private Equity at Elliott; Paul Best from Elliott will assume the role of Chairman of American Greetings post-closing.
“We look forward to partnering with Elliott as we continue to expand our Celebrations portfolio across more product categories, customers, and geographies. This is an exciting opportunity to better serve our associates, consumers, and retail partners.”
- John Compton, CD&R Partner and current Chairman of American Greetings
“Over the past few years, our consumer-led, industry-leading Celebrations approach and innovative products are thriving and resonating with consumers. This transaction is a testament to our associates’ ongoing dedication to serve and delight our consumers and customers,” said American Greetings CEO Joe Arcuri. “Our next phase of growth is underway, and we are confident that Elliott’s deep expertise, outstanding track record of success, and resources make them the ideal strategic partner to accelerate our growth within the Celebrations global marketplace.”
- Joe Arcuri, the current President, Chief Executive Officer and Board member of American Greetings, who will continue in his role upon the closing of the deal
