Design Group Regulatory News (IGR)

22 Mar 2007 07:01

International Greetings PLC22 March 2007 Under embargo until 0700, 22 March 2007 INTERNATIONAL GREETINGS PLC ("International Greetings" or "the Group") Acquisition of German gift wrap company -Strategy of consolidation and international expansion underlined- International Greetings PLC (AIM: IGR), the leading designer and manufacturer ofprivate label greetings products and film and television character basedlicensed stationery, today announces that its Netherlands' based subsidiary,Hoomark, has acquired Eick Pack GmbH & Co. KG ("Eick Pack"), a Germanmanufacturer of gift wrap counter rolls, which are specifically made forin-store gift wrapping by retailers. The acquisition will provide International Greetings with a further Europeanplatform through which it can sell its existing products, as well as a newproduct range for potential and existing clients. The maximum consideration for the acquisition is €510,000 (including shareholderloan repayments), €255,000 of which is deferred based on future performancetargets. Eick Pack, which has been trading for 70 years, is located in northwest Germany and has an annual turnover of approximately €3 million, 80% ofwhich is derived in Germany, with the remainder coming from the rest of Europe. This acquisition underlines the Group's stated strategy of increasing its focuson international growth in order to reduce its exposure to the UK retail sector.Whilst trading in the UK continues to be challenging, the Group's 2007 earningswill show an improvement over the previous year, underpinned by growth inInternational Greetings' existing overseas operations. The Company also announces that it is in the latter stages of negotiations withregard to a number of potential acquisitions in the UK and abroad, in accordancewith its acquisition strategy. Joint Chief Executive, Nick Fisher, commented: "As the foremost marketconsolidator in our sector, the acquisition of Eick Pack further underlines ourcommitment to the growth of International Greetings' presence in continentalEurope. Additionally, it complements our existing gift wrap activities andprovides entry into all our markets for retail in-store gift wrapping services. "With our associated product ranges and large customer base throughout Europe,Eick Pack is a great platform for future growth in this sector of our market." For further information:Nick Fisher, Joint Chief Executive, International Greetings plc: 01707 630 630Richard Sunderland, Tavistock Communications: 020 7920 3150 Notes to Editors: 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 2,000 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 and Shrek series andthe forthcoming Simpsons Movie. International Greetings was founded by Anders Hedlund in 1979 and has successfuloperations in the United States, Hong Kong and, as part of its continuedworldwide expansion, has recently opened facilities in China and Latvia. TheCompany has a strong platform for growth in Europe, through its Dutch basedHoomark subsidiary and, in May 2005, it acquired Anker International, aninternational design, import and distribution business with interests in the UK,Holland and Hong Kong for a consideration of £35.5 million. Anker Internationalsupplies a wide assortment of greetings, festive, stationery and photographicgift products, which both complement and add to the Group's existing ranges. International Greetings listed on AIM in 1995 and is currently capitalised atabout £190 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