The founders of American Greetings Corp have reached an agreement to purchase the gift card and party goods firm. The purchase would make the company private again at the cost of US$878 million.

Shareholders aside from the Weiss family and its partners would be receiving US$18.20 per share in cash together with a dividend of US$0.15 per share. The share values of the company closed at US$16.10 per share at trading last Thursday at the New York Stock Exchange.

The Weiss family, lead by current chief executive officer Zev Weiss with their related partners had increased their offer from US$17.18 last September 2012 to US$17.50 per share in January. The final amounts were agreed upon after negotiations to privatize the company.

The company manufactures greeting cards, gift packaging, party goods stationeries and other gift paraphernalia in North America, UK and Oceania. It also has a subsidiary AG Interactive Inc where electronic greetings can be sent and exchanged.