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Card Factory is set to enter the US market after announcing the acquisition of Garven Holdings for $25m (£20m).
The acquisition is a step in the UK retailer’s growth ambitions, thanks to the acceleration of its partnerships strategy in one of its “key” international target markets. The celebration essentials market represents the biggest market globally at circa £70bn in total.
Garven Holdings, based in Minnesota, trades as Garven Design and Cadence Packaging and is a leader in the design and wholesale of gifts and celebration essentials.
The US retailer has an established customer base of general and specialty retailers which will allow Card Factory to further explore design and buying synergies, alongside opportunities to introduce its own ranges into the US wholesale market.
The specialist retailer of greeting cards also announced that trading has been in line with our expectations. It also noted that its programme of productivity and efficiency savings remains “on track” and that expectations for the full year are unchanged.
Regarding the acquisition, Darcy Willson-Rymer, Card Factory chief executive officer, 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.
“Over a number of years, Garven has built a reputation as a trusted brand known for its quality products and impressive design capabilities, with Anne and Walter building an excellent customer proposition. We are excited to welcome the Garven team to cardfactory and look forward to building upon their existing commercial relationships, as well as forging new ones.”
Willson-Rymer added: “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 Update in May last year. Garven represents an exciting opportunity for Card Factory to build scale in the world’s biggest celebration occasions market.”
