LONDON: Greeting card giant cardfactory announced Tuesday it will acquire Funky Pigeon from WH Smith PLC for £24 million. The move signals cardfactory’s intent to become a top-tier omnichannel player in the UK’s celebration occasions market.
Funky Pigeon, known for its personalised cards and attached gifting via funkypigeon.com, generated around £32 million in annual revenue and £5 million EBITDA on average over the past two years. The Bristol- and Guernsey-based operation will now integrate with cardfactory’s existing infrastructure, pending regulatory approvals.
Darcy Willson-Rymer, CEO of cardfactory, emphasized the acquisition’s role in accelerating the Group’s digital transformation. “This acquisition marks a significant step forward,” he said. “Operational efficiencies, fulfilment synergies and a unified tech platform will deepen insights into customer behaviour and strengthen our omnichannel offering.”
The Group anticipates more than £5 million in annual synergies and expects the deal to be earnings-enhancing by FY27. Funding will come from an expanded debt facility, with a modest impact on leverage.
Cardfactory aims to merge Funky Pigeon’s tech platform with its own manufacturing capabilities in West Yorkshire, creating a vertically integrated fulfilment model. The enhanced offering positions cardfactory as the UK’s second-largest online card and gift retailer, ready to deliver convenience, quality and value.
As part of the acquisition’s long-term vision, cardfactory plans to evolve Funky Pigeon’s platform into the core of its UK and Ireland digital operations.
With strong H2 trading ahead and continued investment in tech upgrades, the company reaffirmed its forecast of mid-to-high single-digit growth in both sales and adjusted PBT for FY26.