Card Factor will establish a physical presence in the US market after acquiring Minnesota’s Garven in a $25million (£19.7million) deal.
The group told shareholders the acquisition of Garven, which offers a customer base for both general retailers and specialty stores, will allow it to ‘further explore design and retailing…(and ) introduce its own range to the US retail market’.
The gift and celebration market is the world’s largest, according to Card Factory, valued at approximately $70 billion.
Darcy Willson-Rymer, chief executive of House of Cards, said the deal was a ‘major strategic move’.
‘Together with our wholesale agreement covering 1,100 stores across the US, we will establish a physical presence in the US market.
‘International partnerships are an important part of our growth strategy.’
The US gift and gift market is the largest in the world, with a value of approximately $70 billion.
Card Factory recently reported a more than 40 percent drop in first-half revenue higher labor and freight costsbut indicated a reduction in inflationary pressures since early August.
The group said on Thursday that trading had been ‘encouraged’ at the start of its extended trading period and also guided for January.
Card Factory shares it rose 7.2 percent to 96.8pi by midday Thursday. However, they have fallen by more than 30 per cent since the end of September on fears of higher prices.
The group said the ongoing program of productivity and efficiency savings ‘remains on track’ and its full-year expectations remain unchanged.
Analysts at UBS said these commitments ‘should please the market’.
They added: ‘As it stands, the shares are trading at a 40 per cent discount to their 10-year moving average despite delivering a solid core business and rising assets from in geographical expansion.’
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