CLEVELAND – Greeting card maker American Greetings announced last week that its board has formed a committee of independent directors to consider an offer to privatize the company, reported the Associated Press.
According to AP, CEO Zev Weiss and his brother, president and COO Jeffrey Weiss, along with other investors and executives, submitted a proposal to the board on Sept. 25. The group wants to buy all of the company's common stock that it doesn't already own for $17.18 per share, valuing American Greetings at approximately $581 million.
The new four-person committee of directors will be led by Scott Cowen, president of Tulane University. The committee has retained legal and financial counsel and will consider other options, the company announced.
American Greetings, which includes such brands as Recycled Paper Greetings and Papyrus, lost $4.3 million — or 13 cents per share — in its second quarter, primarily due to costs related to the acquisition of Britain's Clinton Cards. American Greetings' shares fell 7 cents to close at $16.99 last Friday.