American Greetings, which is building its world headquarters in Westlake, Ohio, will return to its founding family. The Cleveland-based company will be purchased by the Weiss family for a total $878 million buyout agreement.
The Weiss family, which dominates the company’s top management, paid $19 per nonfamily owned share including all debt obligations. Echoing recent changes in ownership of several other companies, this move puts the company into privately owned hands again; ending the card-maker’s run as a publicly traded company. This allows the Weiss family to operate without concerns of quarterly reports or short term returns on investments. Previously the Weiss family owned 7.8 percent of American Greetings, but following a board vote, this deal was approved.
American Greetings sees most of its revenue from paper cards, which is a declining business with the popularity and increase of social media websites for sending messages on special occasions. The Weiss family believes they need to invest a substantial amount of money, as much as $446 million, on projects over the next 5 years. This was a hard sell for investors, but the now privately owned company will be able to make these investments, including replacing or renovating its h