IGR Ig Design Group Plc

TIDMIGR

RNS Number : 1805Z

International Greetings PLC

04 February 2014

4(th) February 2014

International Greetings PLC (the "Group")

Completion of sale of non-licensed division of Alligator Books

International Greetings PLC, one of the world's leading designers, manufacturers, importers and distributors of gift packaging and greetings, stationery and creative play products announces the completion of the sale, to management, of the non-licensed segment of Alligator Books. Alligator Books is a trading division of International Greeting's UK based subsidiary business Anker; Anker will retain and develop the larger, licensed segment of Alligator Books.

The transaction, comprising the sale of the business IP and assets of the non-licensed segment of Alligator Books, will result in an immediate cash inflow of GBP0.6m, with a further opportunity of phased payments totaling up to GBP0.5m to be received by the end of January 2015.

The transaction will have a modest impact on the Group's short term profitability, mitigated by synergy benefits within Anker. Under the terms of the transaction, the Group will provide logistics services to the Purchaser, for a minimum period of 3 years. This is expected to generate over GBP1m of revenue during the period, also therefore mitigating otherwise potentially lost contribution. Additionally, agreement has also been reached with the Purchaser for the Group to cost effectively utilise intellectual property within the non-licensed division in markets outside of the UK.

The sale of the non-licensed segment reflects the Group's strategy to focus on product categories with scope for profitable growth and ongoing commitment to reduce debt and improve leverage.

- Ends-

 
 For further information, please 
  contact: 
 International Greetings plc           Tel: 01525 887310 
  Paul Fineman, Chief Executive 
  Anthony Lawrinson, Chief Financial 
  Officer 
 Cenkos Securities plc                 Tel: 0207 397 8900 
  Bobbie Hilliam 
 FTI Consulting                        Tel: 020 7831 3113 
  Jonathon Brill 
  Georgina Goodhew 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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