Card Factory PLC Acquisition of S A Greetings (3979X)
25 Aprile 2023 - 12:24PM
UK Regulatory
TIDMCARD
RNS Number : 3979X
Card Factory PLC
25 April 2023
25 April 2023
Card Factory plc
("Card Factory")
Acquisition of South Africa Greetings
Card Factory, the UK's leading specialist retailer of greeting
cards, gifts and celebration essentials, is pleased to announce
that it has acquired the entire issued share capital of SA
Greetings Corporation (Pty) Ltd and its subsidiaries, which trade
as SA Greetings, for GBP2.5m, which has been paid in cash.
SA Greetings is the leading wholesaler of greeting cards and
gift packaging in South Africa. It also operates 24 'Cardies'
retail stores, with four further stores operated by franchisees,
and owns and operates a roll-wrap production facility. Its head
office and main warehouse are located in Johannesburg, with sales
offices in Durban and Cape Town.
The acquisition was financed from Card Factory's working capital
and is expected to be earnings enhancing. SA Greetings realised an
EBITDA of GBP591,000 (unaudited), and a PBT of GBP165,000 from net
sales of GBP9.4m (unaudited) during the 12 months to 28 February
2023 and had a net asset value of GBP5.8m and gross assets of
GBP8.5m on this date. (Exchange rate applied: 20 ZAR to 1 GBP
1).
South Africa is one of the target territories for Card Factory's
partnership expansion. The acquisition of SA Greetings, supports
this strategic growth pillar by providing access to key wholesale
accounts through the company's printing, merchandising and
warehousing capacity.
Darcy Willson-Rymer, Chief Executive Officer, commented:
"We are delighted to have completed the acquisition of SA
Greetings and look forward to working with our new colleagues.
Under the continued leadership of SA Greetings MD, Willie
Engelbrecht, we will closely collaborate to further enhance and
develop opportunities for the Card Factory and SA Greetings
businesses.
SA Greetings brings with it significant experience operating a
wholesale business, which can inform and support development of our
retail partnership business, and is entirely aligned with Card
Factory's strategic plan for international expansion. As well as
giving us a foothold into our target South African market, we will
also be using their mature printing, merchandising and warehousing
facilities to understand how we can deliver similar local
capability in other target markets."
Enquiries
Card Factory plc via Teneo (below)
Darcy Willson-Rymer, Chief Executive Officer
Simon Comer, Interim Chief Financial Officer
Teneo +44 (0) 207 353 4200
James Macey White / Jo Blackshaw cardfactory@teneo.com
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END
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April 25, 2023 06:24 ET (10:24 GMT)
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