Manufacturer and retailer of innovative social expression products American Greetings Corporation has completed its acquisition of Chicago-based preeminent creator and designer of humorous and alternative greeting cards Recycled Paper Greetings.

Recycled Paper Greetings (RPG) had annual net sales of approximately US$75 million. RPG's cards are distributed primarily through mass retail partners, drug stores, and specialty retail stores.

RPG was purchased pursuant to a pre-packaged Chapter 11 bankruptcy reorganization. Consideration for the acquisition included the issuance of approximately US$54.7 million of new American Greetings 7.375% notes due 2016 and approximately US$18 million of cash.

This consideration was in addition to the US$44.2 million investment previously made by American Greetings in July 2008. American Greetings also provided approximately US$6.5 million of debtor-in-possession (DIP) financing to RPG during the reorganization process. The borrowings under the DIP were extinguished upon the closing of the acquisition.

RPG has a history of creating humorous and alternative greeting cards with a unique style and tone to meet consumers' needs. This acquisition will permit RPG to benefit from American Greetings' size and scale. Jude Rake will continue to lead Recycled Paper Greetings as CEO.

American Greetings’ Chief Executive Officer Zev Weiss said: "We are pleased to welcome RPG as the newest member of the American Greetings family and to have Jude Rake continue his role as CEO. RPG's product offering, including some of the best humor cards available, is a delight to consumers and we look forward to extending their offerings to our retail partners to enhance our combined productivity."

The company said that it will disclose additional information about the acquisition with its fourth quarter earnings release in late April 2009.