IG Design Group PLC Completion of Acquisition (3211B)
January 09 2018 - 1:00AM
UK Regulatory
TIDMIGR
RNS Number : 3211B
IG Design Group PLC
09 January 2018
IG Design Group PLC
(the "Company" or "Design Group")
Acquisition of a leading Australian greetings card business
IG Design Group plc, one of the world's leading designers,
innovators and manufacturers of celebration, gifting, stationery
and creative play products, is pleased to announce that it has
completed the acquisition of the trade and certain assets of Biscay
Greetings Pty Limited ("Biscay"), a leading greetings card and
paper products business based in Australia, as previously announced
on 21(st) September 2017.
The acquisition, made through Design Group's Australian Joint
Venture Artwrap, was satisfied by a cash consideration of AUD8.9m
using local debt facilities. The consideration represents 2.7x
EBITDA for the year ended 30 June 2017 although an injection of
working capital of up to AUD3m will also be required. In the year
to 30 June 2017 Biscay generated sales of AUD13.4m with an
operating profit before tax of AUD2.9m.
Biscay provides greetings cards and related products to an
extensive base of almost 2,000 customers through regional,
wholesale distributors, and independent retail channels across
Australia and New Zealand. With an established and strong
reputation for design and excellence in product and customer
service that complements the existing attributes of Design Group
Australia, this acquisition provides opportunities for even greater
engagement and cross-selling with all key National and Independent
retailers throughout Australia and New Zealand.
Commenting on the acquisition, Paul Fineman, Chief Executive,
said:
"Following our recent announcement of a robust half year
performance and strong profit growth in Australia, we are delighted
to complete this acquisition which complements Design Group's
existing operations in the territory.
"The acquisition almost doubles the Group's significant market
share in the value channel of the Australian greetings card market,
adds to our capabilities in this growing and higher margin category
and further diversifies the Group geographically. At the same time,
it provides cross-selling opportunities and thus an even more
compelling proposition to existing and new customers "
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQLIFERLEIAIIT
(END) Dow Jones Newswires
January 09, 2018 02:00 ET (07:00 GMT)
Ig Design (LSE:IGR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ig Design (LSE:IGR)
Historical Stock Chart
From Apr 2023 to Apr 2024
