American Greetings sells retail stores to Schurman Fine Papers and purchases Papyrus Brand

American Greetings sold its retail store operations to Schurman Fine Papers ("Schurman"), which operates card and gift retail stores under the name Papyrus. Schurman will operate stores under the American Greetings, Carlton Cards, and Papyrus brands.

American Greetings has purchased the wholesale division of Schurman, which supplies Papyrus brand greeting cards primarily to leading specialty, mass, grocery and drug store channels. American Greetings will become responsible for service to those accounts where Papyrus brand products are sold. The companies have entered into mutual transition services agreements in addition to ongoing commercial licensing, supply, and marketing agreements.

American Greetings paid approximately $18 million dollars as consideration for the wholesale division of Schurman. Schurman paid American Greetings approximately $6 million for its retail business. American Greetings also paid approximately $2 million for a 15percent equity interest in Schurman. In connection with the transaction, American Greetings will provide limited credit support to Schurman.

Chief Executive Officer Zev Weiss said, "Today is a very important day for our company. The addition of the Papyrus brand to the American Greetings family provides the opportunity to serve a consumer with distinct tastes — a consumer who appreciates the Papyrus approach to design and quality. This allows us to focus our efforts and stay true to our vision of providing relevant and compelling products to consumers through leading specialty, mass, grocery and drug store channels. It also brings to an end our business in the specialty retail channel, and we believe our stores will flourish under the Schurman leadership team."