Design Group Regulatory News (IGR)

7 Sep 2007 07:00

International Greetings PLC07 September 2007 International Greetings Acquires Major Competitor in USA In line with its strategy of international expansion, International Greetings(AIM : IGR), the leading designer and manufacturers of greetings products andfilm and television based licensed stationery, is pleased to announce theacquisition of Glitterwrap Inc., based in New Jersey, USA. Glitterwrap is a significant and well-established business in InternationalGreetings' market sector. It designs, manufactures and distributes gift wrap andparty products to premium, mass market and discount retailers across the US, andhas developed an enviable reputation for innovative product design and service. It was acquired for a total consideration of $8.45 million. Initialconsideration of $2.55 million has been paid, $1.3 million in cash and $1.25million by the issue of 232,024 shares. Additional deferred consideration of$5.9 million is payable over the next 30 month, of which up to $3.5 million maybe payable in shares, which are subject to lock-in agreements of two years fromdates of issue. This acquisition provides both strategic and operational opportunities forInternational Greetings' US business, increasing its customer base and extendingits product offering into the party goods sector. Glitterwrap has developed asignificant range of party products which will be distributed not only to the USbut to the Group's other customers on a world wide basis. The current owners of Glitterwrap are staying with the enlarged US business asExecutive Directors and, in taking a significant part of the consideration inInternational Greetings' shares, have demonstrated their long term commitment tothe merged business and its future potential. The acquisition of Glitterwrap is expected to be earnings neutral in the currentfinancial year but is anticipated to make a significant contribution to earningsin the next financial year. Nick Fisher, Joint Chief Executive commented, "The Glitterwrap acquisitionrepresents a major step change for our US business, which together with ourexisting operations will achieve combined revenues of circa $100 million andprovide a solid platform for future organic growth. This deal reinforces ourstatus as a global industry consolidator, and we continue to identifyacquisitions that will enhance our business and create value for ourshareholders." Note 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, accessories, Christmas crackers, greetings cards and otherstationery products. The Group supplies wrapping paper and gift products to a number of globalretailers and holds licences to produce merchandise for most of the well-knownfamily characters, including Disney, Shrek and the Simpsons Movie. International Greetings was founded in the UK in 1979 and, in addition to the UKand Western Europe, has successful operations in the United States, Hong Kong,China and Europe. For further information: Nick Fisher, Joint Chief ExecutiveInternational Greetings plc 01707 630630 Jeremy Carey/Rachel DrysdaleTavistock Communications 020 7920 3150 Graeme Cull 0121 423 8960Arden Partners plc This information is provided by RNS The company news service from the London Stock Exchange