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LONDON (Alliance News) - International Greetings PLC Thursday said it has signed a deal to acquire the trade and certain assets of Netherlands-based gift-wrap manufacturer Enper Giftwrap BV for roughly EUR1.9 million, which it said will widen its customer base and further strengthen its market position in Europe.
The gift packaging and greetings card manufacturer said it is acquiring Enper Giftwrap through its subsidiary IG Europe, and said the majority of the purchase price represents usable fixed assets and stock.
Enper is a gift-wrap manufacturer in the Netherlands servicing northern Europe, with sales of EUR5 million, International Greetings said.
International Greetings said it expects the acquisition to be complete by the end of June, of which IG Europe then plans over the following three month period to discontinue manufacturing operations at Enper's site and integrate the customer base into its own state-of-the-art facilities at Hoogeveen, in northeastern Netherlands.
"This will involve some relocation of fixed assets but the printing capacity for the 2015 season can be accommodated more cost effectively within IG Europe's existing capability, following investment in 2012 in new high definition printing equipment," the company said.
The greetings card retailer said the cash payback on its investment should be between three and four years, with synergies on the combined customer base feeding through mainly from 2015 onwards.
"This acquisition is a compelling and carefully considered 'bolt on' opportunity for International Greetings in Europe, increasing our scale close to home in a financially attractive manner," said Chief Executive Paul Fineman in a statement.
International Greetings shares were up 5.3% at 80.00 pence Thursday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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