Design Group (formerly known as International Greetings) has announced it is to acquire US-based gift packaging company, Impact Innovations in a £56 million deal that is to be mainly funded through the placing of additional ordinary shares (to raise £50 million). This will double Design Group’s business in the States and make it the world’s largest gift packaging company. The acquisition will give the group a 22% market share of the US gift packaging market.
Founded in 1968, with its headquarters in Clara City in Minnesota, as well as offices in Memphis and Asia, Impact Innovations supplies major US retailers with seasonal décor and gift packaging products. It has a turnover in excess of $150 million. Walmart is its largest customer, which is expected to account for over 15% of the group turnover following the acquisition.
Paul Fineman, ceo of Design Group commented: “The combination of Impact Innovations with Design Group not only doubles the scale of our business in the Americas, it further enhances the overall performance and growth potential of our whole Group whilst continuing to illustrate our delivery of the Group’s stated strategy.”
Subject to a successful share placing, the deal is expected to be completed towards the end of September.
Here, Paul Fineman shares an overview of the acquisition and what it will mean for the group.
Top: Paul Fineman, ceo of Design Group with Impact Innovation’s ceo John Dammermann shaking on the deal.
