Design Group Regulatory News (IGR)

7 Apr 2006 07:00

International Greetings PLC07 April 2006 7 April 2006 INTERNATIONAL GREETINGS SNAPS UP ALLIGATOR BOOKS International Greetings PLC ("International Greetings" or "the Group") (AIM:IGR), the leading designer and manufacturer of private label greetings products,wrapping paper, Christmas crackers and film and television character basedlicensed stationery, today announces the acquisition of Alligator Books Limited,a publisher and distributor of children's books and stationery. An initial consideration of £2.5 million is payable, of which £2.25 million willbe paid in cash and £250,000 paid by the issue of 62,703 new ordinary shares.Further payments may become payable, depending on the level of profitability forthe year ended 31 March 2007, these payments being a mixture of cash and shares.Alligator Books' founders and current management team will remain in place afterthe acquisition. Alligator Books creates and publishes children's licensed and generic products.They distribute an extensive range of fiction and non-fiction books ranging frommuch-loved children's classics such as Noddy, Thomas the Tank Engine and PostmanPat, to characters from TV shows such as Scooby Doo, together with a selectionof generic reference, colouring, activity and early learning books. Alligatorrecently acquired the children's book division of Chrysalis, which includes theworld-wide publishing rights for 80 non-fiction illustrated reference books.Alligator Books' turnover and profit before tax for the 12 months to 30 April2005 were £5.5 million and £440,000 respectively. Application for the admission of the new ordinary shares to AIM has been madeand it is expected that this will be effective on or around 12 April 2006. Thenew ordinary shares will rank pari passu in all respects with the Company'sexisting ordinary shares. Joint Chief Executive, Nick Fisher, commented: "This bolt-on deal not only metall our acquisition criteria, particularly from a product and licensed characterperspective, but has also introduced us into the mainstream book publishingsector via the lucrative children's category. Being part of the IG group ofcompanies will ensure that Alligator is in a position to develop its businessrapidly both in the UK and in the global market place". "Our strategy of acquiring this type of business is helping to counter theslowdown in the UK retail sector and reinforces our commitment to developing newproduct categories in the UK, whilst also providing a further platform foroverseas development." "This deal is a great start to our new financial year, and our ever increasingspread of activities gives us confidence for the future". - Ends - For further information: Nick Fisher, Joint Chief Executive, International Greetings plc: 01707 630 602Jeremy Carey, Rachel Drysdale, TavistockCommunications: 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 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, Robots, andthe recently released Batman Begins. 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 £185 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