Design Group Regulatory News (IGR)

27 May 2005 07:00

International Greetings PLC27 May 2005 27 May 2005 International Greetings PLC International Greetings strengthened by major acquisition International Greetings PLC ("IG" or "the Group") (AIM: IGR), the leadingdesigner and manufacturer of private label greetings products, wrapping paperand film and television character based licensed stationery, today announces theacquisition of Anker International PLC ("Anker") for a total consideration of upto £35.5 million. Established in 1971, Anker is an international design, import and distributionbusiness with offices and facilities in the United Kingdom, its primary market,and in Hong Kong and Holland. It supplies a wide assortment of greetings,festive, stationery and photographic gift products which both complement and addto the Group's existing ranges. For the year ended 31 December 2004 Anker's turnover amounted to £39 million,with an adjusted profit before tax* of £4.2 million. Net assets as at 31December 2004 amounted to £20.4 million, including freehold property with a netbook value of £13.2 million. The maximum total consideration for the acquisition is £35.5 million, whichcomprises £12.5 million payable by the issue of 3,294,242 new IG ordinary sharesand £23 million in cash. £12.5 million of the cash consideration is payable oncompletion, with the balance of up to £10.5 million payable after 12 months, ofwhich £0.5 million is dependent on Anker achieving a certain level ofprofitability. IG has today applied for the admission of these new ordinaryshares to AIM. Paul Fineman, aged 45, Chief Executive of Anker, will join the board ofInternational Greetings as an executive director, with immediate effect. Commenting, Nick Fisher, Joint Chief Executive of International Greetings said:"The acquisition of Anker is a major step forward for the Group. The transactionfurther strengthens our international position and is immediately earningsenhancing. We expect to see additional synergy benefits in the future, as weexplore many integration opportunities." "We are also delighted to welcome Paul Fineman to the Board. He brings with hima wealth of experience in Far East trading, which will be a major complement toour long standing manufacturing skills. Paul's contribution to the Group will beinvaluable during our next important period of corporate growth." * profit adjusted to :(a) exclude exceptional items,(b) normalise on-going director-related remuneration and expenses(c) apply accounting policies consistent with IG For further information: Nick Fisher, International Greetings PLC 01707 630630Richard Sunderland, Tavistock Communications 020 7920 3150 About International Greetings: International Greetings PLC is a leading designer and manufacturer of privatelabel wrapping paper, greetings products and film and television character basedlicensed stationery. It currently has over 1,000 employees and produces giftwrapping paper, gift tags, ribbons, Christmas crackers, greeting cards and otherdecorative accessories. The Group provides wrapping paper and gift products to most of the major highstreet retailers and holds the licences to produce merchandise for most of thewell-known family blockbusters, including the Harry Potter series and therecently released Robots. The Group is based in the UK and continues to strengthen its position in Europe,having just moved its Dutch subsidiary, Hoomark, into a new 400,000 sq ft,storage, manufacturing and distribution facility. The Group also has successfuloperations in the United States, Hong Kong and, as part of its continuedworldwide expansion, has recently opened facilities in China and Latvia. International Greetings was founded by Anders Hedlund in 1979. It listed on AIMin 1995 and is currently capitalised at about £170 million. Further information is available at www.internationalgreetings.co.uk. This information is provided by RNS The company news service from the London Stock Exchange