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IG Design Group acquires Aussie greetings card maker Biscay
Gift manufacturer IG Design Group has acquired Australian greetings card business Biscay Greetings via its joint venture Artwrap for A$8.9m in cash.
The acquisition, financed using local debt facilities, represented 2.7 times Biscay's EBITDA for the year ended 30 June 2017, as the group generated a pre-tax operating profit of A$2.9m on sales of A$13.4m.
IG noted that an injection of as much as A$3m would also be required to assist the AIM-listed firm in kick-starting its Australian campaign.
Paul Fineman, chief executive, said, "Following our recent announcement of a robust half year performance and strong profit growth in Australia, we are delighted to complete this acquisition which complements Design Group's existing operations in the territory."
"The acquisition almost doubles the group's significant market share in the value channel of the Australian greetings card market, adds to our capabilities in this growing and higher margin category and further diversifies the group geographically. At the same time, it provides cross-selling opportunities and thus an even more compelling proposition to existing and new customers," he added.
As of 0840 GMT, shares had slipped 0.76% to 391.50p.