Card Factory: Strategic US Entry with Garven Acquisition

Card Factory, the retailer for greeting cards, gifts, and celebration essentials, has recently announced the acquisition of Garven Holdings, LLC and its subsidiaries for $25 million. The acquisition is conducted on a cash/debt-free basis, subject to customary closing adjustments. This move marks a significant strategic effort by Card Factory to physically enter the U.S. gifts and celebration essentials market, which stands as the largest globally with a valuation around $70 billion. By acquiring Garven, Card Factory gains access to an established customer base of both general and specialty retailers. This provides an opportunity for synergies in design and purchasing while facilitating the introduction of Card Factory's product ranges into the U.S. wholesale market. The leadership team of Garven, consisting of Chief Operating Officer Anne Schulze and Chief Financial Officer Walter Jungbauer, will continue managing the business post-acquisition. Darcy Willson-Rymer, CEO of Card Factory, emphasized that this acquisition is crucial for their partnerships strategy and complements their separate wholesale supply agreement across more than 1,100 U.S. stores. The acquisition enhances Card Factory’s physical presence in the sizable U.S. market. Notably, Garven has earned a reputation for quality products and impressive design capabilities, making them a trusted brand. Card Factory looks forward to expanding upon the commercial relationships established by Garven and forging new partnerships. The acquisition aligns with the growth strategy outlined in Card Factory’s Capital Markets Update, aiming to capitalize on international partnerships and scale their operations in the world's largest celebration occasions market.