American Greetings to be Acquired by Elliott Investment Management
Deal News | Dec 20, 2024 | Clayton, Dubilier & Rice, Inc.
Elliott Investment Management L.P. has announced an agreement to acquire a majority stake in American Greetings, a key player in the global Celebrations marketplace. The transaction, involving the existing minority owner Clayton, Dubilier & Rice and the founding Weiss family, highlights a strategic investment designed to foster growth in both physical and digital celebration products. American Greetings, known for brands like Papyrus and Carlton Cards, boasts a significant global presence and innovative consumer strategies. Paul Best of Elliott will assume the Chairman role, with the current CEO Joe Arcuri maintaining his position to drive further market expansion. Elliott's comprehensive investment history, including ventures with Barnes & Noble and Waterstones, supports this new collaboration. The deal awaits customary closing conditions and regulatory approvals, with the completion anticipated by the first quarter of 2025. Financial and legal advisories have been secured, with Barclays, UBS Investment Bank, and BofA Securities providing committed financing alongside legal counsel from Davis, Polk & Wardwell. CD&R Partner John Compton praised the alignment of corporate strategies aimed at enhanced portfolio expansion. This move signifies Elliott's commitment to leveraging its expertise for American Greetings' continued evolution in the Celebrations domain.
Sectors
- Private Equity
- Celebrations and Greetings
- Digital Media
Geography
- United States – American Greetings is a US-based company with domestic operations and key market presence, making the US a primary geographical focus.
- Global – American Greetings has operations and market influence in Canada, the UK, Australia, and New Zealand, indicating a significant global footprint.
Industry
- Private Equity – The involvement of Elliott Investment Management and Clayton, Dubilier & Rice in a majority stake acquisition signifies a major transaction in the private equity sector.
- Celebrations and Greetings – American Greetings operates within the celebrations industry, providing greeting cards, party goods, and a variety of celebration-related products and services.
- Digital Media – American Greetings also has a significant digital business offering digital greetings and premium content, relevant to the digital media industry.
Financials
- Not disclosed – The transaction terms, including financial details, remain undisclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Elliott Investment Management L.P. | Bidding Company | Company | A private investment firm acquiring a majority stake in American Greetings. |
| American Greetings Corporation | Target Company | Company | A global leader in the celebrations marketplace providing physical and digital greeting products. |
| Clayton, Dubilier & Rice, Inc. | Selling Company | Company | An investment firm maintaining a minority stake in American Greetings post-transaction. |
| Weiss Family | Stakeholder | People | Descendants of the company's founder, retaining a significant minority ownership. |
| Paul Best | Chairman Designate | Person | Senior Managing Director at Elliott, set to become Chairman post-transaction. |
| Joe Arcuri | CEO | Person | Current President and CEO of American Greetings, continuing in his role. |
| Barclays, UBS Investment Bank, BofA Securities | Financial Advisors | Companies | Provided committed financing for the transaction. |
| Davis, Polk & Wardwell | Legal Advisor | Company | Served as legal advisor to Elliott. |
| Centerview Partners, BofA Securities | Financial Advisors to American Greetings | Companies | Provided financial advisory services to American Greetings. |
| John Compton | CD&R Partner and current Chairman of American Greetings | Person | Partner at CD&R, involved in the transition with Elliott. |