Am I correct in seeing this announcement as saying that this acquisition is in addition to a separate wholesale agreement allowing access into all USA states?
In other words this is an extra bonus and crucially self funded and gives physical presence in the US. A brilliant move!
This hasn’t yet been understood. If I am correct the market thinks this is the expected announcement of who the US partner is. |
i think they want to establish their own US production as it is in UK. hence the talk about procurement synergies etc.
to fill the US wholesales deal |
I read as you do too, Bonsal. |
The prospect of significant growth for CARD can now happen. |
 No RNS info in the header, so here it is. Very positive news and a decent share price reaction so far...
5 December 2024
Card Factory plc ("cardfactory")
cardfactory to enter the US with the acquisition of Garven Holdings, LLC.
Entry into biggest global celebration occasions market marks an important milestone in international growth ambitions.
cardfactory, the UK's leading specialist retailer of greeting cards, gifts and celebration essentials, today announces that it has acquired the entire issued share capital of Garven Holdings, LLC and its subsidiaries ("Garven"). Garven trades as Garven Design and Cadence Packaging and is a leader in the design and wholesale of gifts and celebration essentials, based in Minnesota, USA.
Strategic Rationale
In line with cardfactory's growth plan, this acquisition accelerates our partnerships strategy in one of our key international target markets. It marks cardfactory's physical entry into the US gifts and celebration essentials market, which represents the biggest market globally at circa £70 billion in total.
Garven has an established customer base of general and speciality retailers which will allow cardfactory to further explore design and buying synergies, alongside opportunities to introduce its own ranges into the US wholesale market.
Chief Operating Officer, Anne Schulze and Chief Financial Officer, Walter Jungbauer will continue to manage the Garven business.
Financial Consideration
The acquisition price of $25 million on a cash/debt free basis (subject to customary closing adjustments) was paid in cash at Completion on 4 December 2024 and implies an EV/EBITDA multiple of c.5x. The transaction has been funded from cardfactory's existing cash and debt facilities and the Company's leverage position remains comfortably below our target maximum of 1.5x. Based on current sales, the acquisition represents around 5% of cardfactory's revenue, with negligible benefit to be realised in the remainder of FY25.
Trading Update
Trading in the second half to date has been in line with our expectations and we have been encouraged by the start of the Christmas season. Our programme of productivity and efficiency savings, as announced at our Interim results in September 2024, also remains on track. Our expectations for the full year are unchanged, albeit we are yet to trade through the peak Christmas trading period. We will provide a further update to the market in our January trading statement which is scheduled for 14 January 2025.
Darcy Willson-Rymer, cardfactory Chief Executive Officer, commented:
"The acquisition of Garven is an important strategic milestone in our partnerships strategy. Together with our separate wholesale supply agreement covering over 1,100 stores across the US, it establishes a physical presence in the US market. Over a number of years, Garven has built a reputation as a trusted brand known for its quality products and impressive design capabilities, with Anne and Walter building an excellent customer proposition. We are excited to welcome the Garven team to cardfactory and look forward to building upon their existing commercial relationships, as well as forging new ones.
"International partnerships are a key component of our growth strategy. This acquisition is a key step in delivering the growth from partnerships as we guided at our Capital Markets Update in May last year. Garven represents an exciting opportunity for cardfactory to build scale in the world's biggest celebration occasions market." |
Am I correct in seeing this announcement as saying that this acquisition is in addition to a separate wholesale agreement allowing access into all USA state?
In other words this is an extra bonus and crucially self funded and gives physical presence in the US. A brilliant move!
This hasn’t yet been understood. If I am correct the market thinks this is the expected announcement of who the US partner is. |
The only thing stopping this going mental is the small shorts still in place, but there going to have to get out quick! But, leaves it supressed enough for me to buy more.
I called 3 weeks ago the 'Rounded Bottom' pattern on the 6 month chart. DYOR. |
In at the bell for a trade to see if this can bounce back.
Just wondering if the market has been caught abit blindsided by that update. The market is clearly expecting a profit warning here, so that update appears to suggest things could be less worse than feared.
It is clearly early on in festive trading, but at least two shorters in here as well. Looked worth a go. An exit if it comes back under 92p, currently at 97p.
Wonder if it can hold its gains on that. Clearly if the festive period trading does go to plan, then this is well oversold.
Decent start with volume already at 1.3m. It would be nice to see that balloon.
Let's see.
All imo
DYOR |
UK company buys foreign company! Shock, horror! |
what i like is the size of the target. enough of a critical mass, but not too costly. affordable.
tradig in line is superb news to me. 14p |
I agree, 100% positive. |
I agree, 100% positive. |
How is this anything other than great news? Trading in line, expansion into the world's biggest gists market, no change to full year expectations when many were doubting they would get close. Perhaps I am wrong but this looks really positive. |
Chester . lfl at an arbitrary date before the busiest period of the year is meaningless. |
And a decent trading update with FY remaining unchanged..
Trading Update
Trading in the second half to date has been in line with our expectations and we have been encouraged by the start of the Christmas season. Our programme of productivity and efficiency savings, as announced at our Interim results in September 2024, also remains on track. Our expectations for the full year are unchanged, albeit we are yet to trade through the peak Christmas trading period. We will provide a further update to the market in our January trading statement which is scheduled for 14 January 2025. |
Beachbum lol! |
The details look good, 1100 US stores..
"The acquisition of Garven is an important strategic milestone in our partnerships strategy. Together with our separate wholesale supply agreement covering over 1,100 stores across the US, it establishes a physical presence in the US market. Over a number of years, Garven has built a reputation as a trusted brand known for its quality products and impressive design capabilities, with Anne and Walter building an excellent customer proposition. We are excited to welcome the Garven team to cardfactory and look forward to building upon their existing commercial relationships, as well as forging new ones.
"International partnerships are a key component of our growth strategy. This acquisition is a key step in delivering the growth from partnerships as we guided at our Capital Markets Update in May last year. Garven represents an exciting opportunity for cardfactory to build scale in the world's biggest celebration occasions market." |
Reiterating guidance which is 14.4p eps for FY 1/2025. p/e 6.28, peg 0.57, yield 5.5%
Together with the US expansion, should get a bounce imo |
Sensible strategy, higher ave spend and margin |
LFL not meaningless. Shows underlying trend. Agreed the weighting this year is more to gifting. Let's hope it pays off. |
Alternatively, the fact that expectations for the full year are unchanged is good news. And a like for like now would be meaningless. |
TU No figures quoted at all which means they are not great. They are in line. Which means little except expectations for full year are unchanged. Big "yet to trade Xmas". Good news on US venture, a way around the tariff man.Not sure this restores confidence, happy to be proven wrong but I would have liked a LFL number. |
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