Overview

• Card Factory has completed its £24 million purchase of Funky Pigeon from WH Smith, based on the greeting card firm’s two-year average revenue of £32 million and EBITDA of £5 million.
• Shares in Card Factory climbed 7% on the announcement, and it plans to merge Funky Pigeon’s Guernsey fulfilment centre with its Baildon, West Yorkshire, operations to drive cost savings.
• Card Factory says the acquisition will make it the UK’s second-largest online card and gift retailer and reinforce its ambition to become a leading omnichannel player.
• The deal follows Card Factory’s shutdown of its gettingpersonal.co.uk website in January as it pursues digital growth through targeted acquisitions.
• WH Smith has exited its legacy high street business by selling 480 stores to Modella Capital for rebranding as TG Jones and will now focus exclusively on its travel-site outlets.