American Greetings wins over RPG
American Greetings evidently found the perfect way to smoothe over a tiff.
Recycled Paper Greetings agreed to be bought by the second-largest U.S. greeting card maker, which was attracted to the smaller rival’s “witty, funny and fresh content.”
The agreement comes after a spat in September, when American Greetings said on an earnings conference call that it had bought $44 million of distressed RPG debt.
RPG Chief Executive Jude Rake said in a statement at the time that he was taken by surprise by the announcement, and called the actions of the larger rival “predatory.” RPG said it had even filed a lawsuit against American Greetings earlier.
Rake has since changed his mind. “This acquisition is good news for our company on many fronts,” he said in a statement announcing the deal.
So how did American Greetings change Recycled Paper’s mind? Maybe they sent their rival a nice card.