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American Greetings

From Alfawiki
American Greetings Corporation
Company typePrivate
IndustryGreeting card products, gift wrap, party supplies, stationery, calendars, educational merchandise
Founded1906
FounderJacob Sapirstein
Headquarters
Westlake, Ohio
,
United States
Area served
Worldwide
Key people
Joe Arcuri (CEO), John Compton (Chairman)
ProductsGreeting cards, gift wrapping materials, stickers, party supplies, stationery, calendars, educational merchandise
OwnerWeiss family and Clayton, Dubilier & Rice (CD&R)
ParentCentury Intermediate Holding Co.
Websitewww.americangreetings.com

American Greetings Corporation is a privately owned U.S. enterprise and ranks as the globe's second-largest manufacturer of greeting card products, trailing only Hallmark Cards. Based in Westlake, Ohio, a suburb near Cleveland, the company offers a broad assortment including traditional and digital greeting cards, gift wrapping materials, stickers, party supplies, stationery, calendars, and educational merchandise. Its portfolio encompasses brands such as Carlton Cards, Tender Thoughts, Papyrus, Recycled Paper Greetings, and Gibson Greetings.

The company’s former toy design and licensing arm—initially known as Those Characters From Cleveland, later AG Properties and American Greetings Entertainment—has since become an independent entity operating under the name Cloudco Entertainment. Additionally, American Greetings holds exclusive licensing agreements for Nickelodeon properties.

Sapirstein Greeting Card

Established in 1906 by Polish immigrant Jacob Sapirstein (1885–1987), the business began with card sales from a horse-drawn cart and has remained family-operated since its founding. Jacob’s eldest son, Irving Sapirstein, joined the firm as a partner in 1918 when he was just nine years old; his brother Morris followed in 1926. In 1928, the company secured a significant $24,000 contract for postcards. Innovation came early with the introduction of self-service card display cabinets in 1929, followed by the commencement of in-house greeting card production in 1932.

The hiring of sales representatives commenced in 1934. Harry Sapirstein, the youngest son, became part of the company in 1935. By 1936, the business expanded by opening its first branch office alongside its initial major manufacturing plant.

American Greetings

The original Sapirstein Greeting Card Co. was renamed American Greetings Publishers in 1938 and formally incorporated in 1944. It went public in 1952 under the name American Greetings Corporation by issuing 200,000 shares to finance acquisitions and growth initiatives. In 1956, it established Carlton Cards, Ltd., a Canadian subsidiary, and introduced the Hi Brows humor card series. The corporate headquarters relocated to Brooklyn, Ohio in 1957. By 1960, Irving Stone held the presidency while Jacob Sapirstein served as chairman. International expansion followed with the creation of a Mexican subsidiary in 1969 and the launch of Summit Corporation (later Carlton Cards Retail), a retail subsidiary established in 1971.

In 1967, American Greetings debuted the highly successful Holly Hobbie character which led to forming Those Characters From Cleveland Inc., generating over $100 million in sales by 1968. The launch of the Ziggy comic strip in 1972 contributed additional revenue streams. By the late 1970s, Holly Hobbie ranked among the world’s leading licensed female characters.

In 1978, Morry Weiss assumed the presidency while Irving Stone became chairman and CEO. That year saw the formation of subsidiaries Plus Mark, Inc., focusing on Christmas gift wrap and accessories, and A.G. Industries, Inc., specializing in display fixtures to support mass-market distribution channels such as pharmacies, variety stores, discount outlets, and supermarkets—diverging from Hallmark’s traditional retail approach.

Throughout the 1980s, American Greetings invested licensing earnings into national advertising campaigns to boost market share amid stiff competition from Hallmark and Gibson Greetings. A price war with Gibson during 1986-87 resulted in losses for key industry players; American Greetings took until 1989 to fully recover.

Those Characters From Cleveland introduced Strawberry Shortcake in 1981 which achieved $500 million in retail sales; this was followed by Care Bears generating $2 billion over two years. By 1991, American Greetings had doubled net income with a sales increase of 10%, outperforming Hallmark’s growth rate of just 1%. Morry Weiss became CEO while Ed Fruchtenbaum was promoted as the company’s first president from outside the family. They implemented operational streamlining and enhanced information systems to improve sales monitoring and inventory control.

In 1992, American Greetings acquired Custom Expressions, Inc., producer of CreataCard kiosks that allowed customers to personalize cards at mass-merchandise locations. Although initially successful, kiosk usage declined with increased internet adoption; a patent settlement with Hallmark permitted joint utilization of touchscreen technology.

The mid-1990s marked diversification into new product sectors and international markets via acquisitions: Magnivision (reading glasses) was purchased in 1993; DesignWare party goods were relaunched in 1996; Learning Horizons educational products subsidiary was founded in 1997; Contempo Colours party goods were acquired in 1999. International investments included stakes in South Africa (S.A. Greetings), Australia/New Zealand (John Sands), United Kingdom (Camden Graphics Group and Hanson White), and Malaysia (Memory Lane Sdn Bhd).

In 1999, American Greetings acquired competitor Gibson Greetings, merging the second and third largest U.S. greeting card companies while gaining a robust UK division plus an equity interest in Egreetings Network Inc. That same year marked their transition from NASDAQ to listing on the New York Stock Exchange.

A pricing conflict with Hallmark in 1999 squeezed profit margins; simultaneously implementing a new inventory system caused a $100 million sales drop ending a long period of revenue growth. Ed Fruchtenbaum was dismissed in 2000 due to insider trading allegations; James C. Spira became vice-chairman overseeing restructuring efforts including workforce reductions, facility shutdowns, discontinuation of Forget-Me-Not brand products, reduction of card SKUs from 15,000 to 10,000 units, and shifting sales recognition to retailer registers—measures that cost $300 million and resulted in losses through the early 2000s.

Expansion into digital platforms involved acquiring full ownership of Egreetings Network (2001) and Blue Mountain Arts (2002), managing multiple e-card websites with intentions to achieve profitability by late 2002.

Leadership changed hands in 2003 when Morry Weiss’s sons Zev and Jeffrey assumed roles as CEO and president respectively while Morry remained chairman. In 2007, the company purchased Webshots for $45 million cash.

Divestments included selling MagniVision to Foster Grant affiliates in 2004 and closing DesignWare’s manufacturing facility by 2010; party goods production was outsourced to Amscan with compensation including $25 million plus stock warrants.

Between 2013 and 2016, American Greetings shifted its headquarters from Brooklyn to Westlake under lease agreements connected to the Weiss family.

In May 2012, American Greetings compelled Clinton Cards PLC into administration before acquiring its assets including UK greetings brands Camden Graphics, Hanson White, Forget Me Not, and Xpressions. Dominique Schurman from Schurman Retail Group was appointed to manage Clinton’s operations.

Over its history, American Greetings has strategically utilized acquisitions, licensed popular characters worldwide, expanded global operations, invested heavily in technology-driven sales tools, and executed restructuring initiatives to sustain its competitive position within the greeting card industry.

Private ownership

In mid-2013, American Greetings transitioned back to a private company, with its valuation set at $878 million and a buyout price of $18.20 per share, acquired by Century Intermediate Holding Co., owned by the Weiss family. By 2018, the Weiss family divested a 60% controlling interest to the investment firm Clayton, Dubilier & Rice (CD&R), while maintaining control over American Greetings Entertainment, which was separated into Cloudco Entertainment. The UK Greetings division remained under CD&R’s control, whereas the Weiss family continued to own the UK-based Clintons retail chain. After this transaction, David Scheible succeeded Morry Weiss as chairman, and John Beeder, previously president, was elevated to CEO; former executives remained active on the board. In January 2019, the Weiss family put American Greetings’ headquarters on the market.

Subsequently, John Compton took over the chairman role from Scheible, and on March 1, 2019, Joe Arcuri assumed the CEO position following Beeder’s retirement. In January 2020, Schurman Retail Group—a part-owner of American Greetings—filed for Chapter 11 bankruptcy protection, resulting in the shutdown of all its outlets, including those branded as American Greetings.

Gibson Greetings

American Greetings acquired Gibson Greetings in 1999. Originally established in 1855 as Gibson & Company, Lithographers by siblings George, Robert, Samuel, and Stephen in Cincinnati, the company shifted its focus to greeting cards toward the end of the 19th century and was renamed Gibson Greeting Cards Inc.. The brand gained recognition for featuring writer Helen Steiner Rice starting in 1960. Prior to American Greetings’ acquisition, Gibson was owned by RCA Corporation.

Divisions

American Greetings conducts its business through four main segments:

  • North American Social Expression Products
  • International Social Expression Products
  • AG Interactive (previously included Webshots)
  • A non-reportable segment commonly referred to as "Retail"

Active

Former

Notable cartoonists

See also

External links

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