American Greetings Faces Potential Sale by CD&R

Private equity firm Clayton, Dubilier & Rice (CD&R) considers selling American Greetings, potentially valuing the company at $1.5 billion, including debt. Despite declining revenue in the greeting card industry, American Greetings has diversified into digital cards and gift packaging. CD&R acquired a majority stake in 2018.

Clayton, Dubilier & Rice (CD&R), a private equity firm, is contemplating the sale of American Greetings, which may be valued at around $1.5 billion, according to insider sources.

Originally founded in 1906, American Greetings was taken private by the Weiss family in 2013, and CD&R secured a 60% stake in 2018. The firm is collaborating with Bank of America and Centerview Partners to manage the potential sale, expected to draw interest from other private equity firms.

Amid an industry downturn driven by the rise of digital cards, American Greetings continues to see most of its revenue from traditional paper cards sold by major retailers. Efforts to adapt include expanding into digital and gift packaging services. CD&R, which invests in various sectors including consumer goods, has yet to comment on the sale.

(With inputs from agencies.)