by Christopher Freeburn | September 27, 2012 10:31 am
An investment group headed by its CEO and founding family has made a $580 million buyout bid for American Greetings (NYSE:AM).
The company said that the offer of $17.18 a share was presented on Tuesday by CEO Zev Weiss and other members of the Weiss family. The investment group’s offer represents a 20% premium over the shares’ Tuesday closing price of $14.34, Reuters noted.
Shares of American Greetings were up 1% in Thursday morning trading to just under $17 a share.
The Weiss family traces its lineage back to company founder Jacob Sapirstein, who launched the company in 1906. Zev Weiss joined the American Greetings in 1992 and became CEO in 2003, succeeding his father Morry Weiss.
The greeting card maker, which competes with privately-held Hallmark, has seen revenues fall by 17% over the past decade.
Its distribution in the United Kingdom was dented by the collapse of British card chain Clinton Cards earlier this year. American Greetings ultimately purchased many of Clinton Cards’ stores.
American Greetings owns a number of card brands in the U.S., including Carlton Cards, Gibson and its own eponymous brand.
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