American Greetings Acquires Recycled Paper Greetings
Chicago-based Recycled Paper Greetings (RPG) is a creator and designer of humorous and alternative greeting cards with annual net sales of approximately $75 million. RPG was purchased by American Greetings pursuant to a pre-packaged Chapter 11 bankruptcy reorganization. Consideration for the acquisition included the issuance of approximately $54.7 million of new American Greetings 7.375 percent notes due 2016 and approximately $18 million cash. The company will disclose additional information about the acquisition with its fourth quarter earnings release in late April 2009.
Chief Executive Officer Zev Weiss says, "We are pleased to welcome RPG as the newest member of the American Greetings family and to have Jude Rake continue his role as CEO. RPG's product offering, including some of the best humor cards available, is a delight to consumers and we look forward to extending their offerings to our retail partners to enhance our combined productivity."
Chief Executive Officer Zev Weiss says, "We are pleased to welcome RPG as the newest member of the American Greetings family and to have Jude Rake continue his role as CEO. RPG's product offering, including some of the best humor cards available, is a delight to consumers and we look forward to extending their offerings to our retail partners to enhance our combined productivity."