Sparks - Card Factory

Card Factory’s acquisition in the US is consistent with its strategy of growing international reach, in a key market that was identified as attractive for its international ambitions at the 2023 capital markets day market. The trading update is reassuring, although the peak Christmas trading period lies ahead.

At the interim results in September, Card Factory indicated that it had secured a nationwide wholesale retail partnership in the US. Today, Card Factory has announced it has acquired Garven, a leader in the design and wholesale of gifts and celebrations essentials for U$25m or c 5x EV/EBITDA. The company has an established customer base and will allow Card Factory to explore design and buying synergies alongside opportunities to introduce its own ranges into the US wholesale market. In terms of scale, Garven represents c 5% of group sales and will provide a negligible contribution to FY25’s results.

Card Factory has also updated on current trading, indicating that it is in line with management’s expectations and that its profit expectations for FY25 are unchanged.