Cleveland, Ohio (ots/PRNewswire) -
American Greetings Corp. (NYSE: AM) today announced it has signed
a letter of agreement to sell its Magnivision nonprescription reading
glasses subsidiary to an affiliate of AAi.FosterGrant in a cash
transaction. Terms of the deal were not disclosed.
Zev Weiss, chief executive officer of American Greetings, said the
sale of Magnivision reflects the Corporation's strategy of focusing
resources on businesses that are closely related to its core
competence of social expression. "As we have stated, we are
evaluating our entire business portfolio," Weiss said, "and
Magnivision, while a strong and profitable company, is a better
strategic fit for AAi.FosterGrant than it is for us. We decided that
we can generate more value for our shareholders by divesting
Magnivision than by operating it ourselves."
The Corporation expects the transaction, which is subject to
Hart-Scott-Rodino approval and other applicable conditions, to close
in approximately 30 to 60 days. Magnivision will become a part of the
AAi.FosterGrant family of companies once the sale is final.
AAi.FosterGrant, a designer and marketer of sunglasses, reading
glasses, optical frames and jewelry, is located in Smithfield, R.I.
and employs about 1,200 people worldwide.
Magnivision is the world's largest manufacturer and distributor of
nonprescription reading glasses sold over the counter. Located in
Miramar, Fla., Magnivision generates gross sales of approximately $80
million and employs about 200 full-time associates and about 1,000
About American Greetings Corporation
American Greetings Corporation (NYSE: AM) is one of the world's
largest manufacturers of social expression products. Along with
greeting cards, its product lines include gift wrap, party goods,
reading glasses, candles, stationery, calendars, educational
products, ornaments and electronic greetings. Located in Cleveland,
Ohio, American Greetings generates annual net sales of approximately
$2 billion. For more information on the Corporation, visit
The statements contained in this release that are not historical
facts are forward-looking statements. Forward-looking statements are
generally identified by words such as "believes," "anticipates,"
"expects," "plans," "should," "estimates" and similar expressions.
These forward-looking statements involve risks and uncertainties.
Factors that could cause actual results to differ materially from
those stated or implied in our forward-looking statements, include
but are not limited to: retail bankruptcies and consolidations,
successful integration of acquisitions, successful transition of
management, a weak retail environment, consumer acceptance of
products as priced and marketed, the impact of technology on core
product sales, competitive terms of sale offered to customers,
successfully implementing supply chain improvements and achieving
projected cost savings from those improvements, and the Corporation's
ability to comply with its debt covenants. Risks pertaining
specifically to the Corporation's interactive business segment
include the viability of online advertising and subscriptions as
revenue generators and the public's acceptance of online greetings
and other social expression products.
In addition, this release contains time-sensitive information that
reflects management's best analysis as of the date of this release.
American Greetings does not undertake any obligation to publicly
update or revise any forward-looking statements to reflect future
events, information or circumstances that arise after the date of
this release. Further information concerning issues that could
materially affect financial performance related to forward-looking
statements can be found in the Corporation's periodic filings with
the Securities and Exchange Commission.
Web site: http://corporate.americangreetings.com
ots Originaltext: American Greetings Corporation
Im Internet recherchierbar: http://www.newsaktuell.ch
David D. Poplar, Investor Relations Manager of American