REG - Card Factory PLC - Acquisition of S A Greetings

Card FactoryAnnouncement

25/04/2023 11:30

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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 £2.5m, 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
£591,000 (unaudited), and a PBT of £165,000 from net sales of £9.4m
(unaudited) during the 12 months to 28 February 2023 and had a net asset value
of £5.8m and gross assets of £8.5m 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 (mailto:cardfactory@teneo.com)

 

 

 

 

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