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LONDON (Alliance News) - IG Design Group PLC on Tuesday said it intends to raise up to GBP50 million as it agrees to buy US gift packaging products supplier Impact Innovations Inc for GBP56.5 million.
IG Design, which makes things such as gift packaging, greeting cards, partyware, and stationary, will issue up to 9.8 million shares at a price of 540 pence each, representing a 0.1% discount to its average price for the five days to Friday last week.
The stock was trading 3.9% higher on the day Tuesday at 543.43p per share.
For the year to the end of 2017, Impact Innovations recorded underlying earnings before interest, taxes, depreciation, and amortization of USD15.0 million on revenue of USD155.9 million.
IG Design believes the acquisition will allow the company to expand into the seasonal decor product category both in North America and around the world.
Also, it will add a "distinct" customer base, as Impact Innovations has a long-term relationships with major blue-chip US retailers, IG Design added.
"The combination of Impact Innovations with Design Group not only doubles the scale of our business in the Americas, it further enhances the overall performance and growth potential of our whole group whilst continuing to illustrate our delivery of the group's stated strategy," said IG Design Chief Executive Paul Fineman.
