UK’s Card Factory acquires SA Greetings, a South African wholesaler, for £2.5 million

UK's Card Factory acquires SA Greetings, a South African wholesaler

LONDON, UK: Card Factory, the UK’s leading specialist retailer of greeting cards, gifts, and celebration essentials, announced today that it has acquired the entire issued share capital of SA Greetings Corporation (Pty) Ltd and its subsidiaries, which trade as SA Greetings, for £2.5m in cash.

SA Greetings is the leading wholesaler of greeting cards and gift packaging in South Africa, operating 24 retail stores and owning a roll-wrap production facility.

The acquisition was financed from Card Factory’s working capital and is expected to be earnings-enhancing. SA Greetings realized an EBITDA of £591,000 (unaudited) and a PBT of £165,000 from net sales of £9.4m (unaudited) during the 12 months to 28 February 2023 and had a net asset value of £5.8m and gross assets of £8.5m on this date. South Africa is one of the target territories for Card Factory’s partnership expansion.

Darcy Willson-Rymer, Chief Executive Officer, said, “We are delighted to have completed the acquisition of SA Greetings and look forward to working with our new colleagues. As well as giving us a foothold into our target South African market, we will also be using their mature printing, merchandising, and warehousing facilities to understand how we can deliver similar local capability in other target markets.”

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Card Factory Plc

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