Card Factory makes strategic acquisition in the US
Card Factory has acquired Garven Holdings, a US company specialising in the design and wholesale of gifts and celebration essentials, for $25 million.
Marking the greeting card and gift retailer’s entry into the US, the move will also enable Card Factory to explore design and buying synergies, while looking at opportunities to introduce its own ranges into the US wholesale market.
Trading as Garven Design and Cadence Packaging, the company will continue to be managed by its chief operating officer Anne Schulze and chief financial officer Walter Jungbauer following the acquisition, which is being funded from Card Factory’s existing cash and debt facilities.
Darcy Willson-Rymer, Card Factory chief executive, said: “The acquisition of Garven is an important strategic milestone in our partnerships strategy. Together with our separate wholesale supply agreement covering over 1,100 stores across the US, it establishes a physical presence in the US market.
“International partnerships are a key component of our growth strategy. This acquisition is a key step in delivering the growth from partnerships as we guided at our capital markets uUpdate in May last year. Garven represents an exciting opportunity for Card Factory to build scale in the world’s biggest celebration occasions market.”
Giving an update on Card Factory’s progress, the company said trading in its second half to date has been in line with expectations and that the start to the Christmas season has been encouraging.
It added: “Our programme of productivity and efficiency savings, as announced at our Interim results in September 2024, also remains on track. Our expectations for the full year are unchanged, albeit we are yet to trade through the peak Christmas trading period.”
