(Alliance News) - Gift packaging and stationery firm IG Design Group PLC on Monday said it has acquired CSS Industries Inc in a deal which values the US-based company at GBP89.7 million.
CSS, which produces seasonal gift products, will be earnings enhancing in its first full-year post acquisition, as it is expected to report net sales between USD346.0 million and USD352.0 million in the year ending March.
IG Design Chief Executive Paul Fineman said: "As well as doubling the scale of our US business, the combination of CSS and Design Group further strengthens our position as the global leader in consumer gift packaging and establishes us as a major supplier to the creative craft market.
"We are delighted to have once again identified a compelling opportunity that meets our clear criteria, whilst maintaining prudent levels of average leverage. This acquisition is not only earnings enhancing, it also provides us with tremendous prospects to create further value for our shareholders."
IG Design also proposed a placing to raise GBP120.0 million. It will price the placing shares at 694.0 pence each and it will be conducted through a bookbuild process.
Shares in the company closed 3.2% lower at 687.00p each in London on Monday.
By Eric Cunha; ericcunha@alliancenews.com
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Design Group (IGR)