WH Smith PLC has sold funkypigeon.com to Card Factory plc for 拢24m.
WH Smith said the all-cash deal, agreed following a strategic review of the Funky Pigeon business, will see it become a pureplay global travel retailer.
Once regulatory approvals have been received and the deal completed – expected to occur before the end of the calendar year – it will create the second-largest online card and attached gift retailer in the UK after Hallmark.
Funky Pigeon is a business with 拢32m revenues and 拢5m EBITDA. It has teams in Bristol and Guernsey.
The acquisition will be funded from a draw down of up to 拢35m under the accordion facility provided by cardfactory’s banking syndicate, as part of its current debt facilities.
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“This acquisition marks a significant step forward in cardfactory’s strategy to build a scaled, competitive digital presence in the celebration occasions market,鈥� said Darcy Willson-Rymer, cardfactory CEO.聽
鈥淚t brings a high-quality platform and proven technology, accelerating our ability to compete in the direct-to-recipient card and gifting segment, so supporting our ambition to become the leading omnichannel retailer in our sector.
“Together, the enlarged customer base will benefit from a richer, more convenient customer proposition, combining the strength of our nationwide store estate and wider celebrations offer with Funky Pigeon’s exceptional digital experience.聽
鈥淥perational efficiencies, fulfilment synergies, and a unified technology platform will provide the data needed to develop deeper insights into the customer journey, enabling us to build a stronger, more integrated omnichannel business.
“The board and wider cardfactory team look forward to welcoming Funky Pigeon colleagues to the group.”