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28 January, 2020 - 11:28 By Tony Quested

£89.7m US acquisition looks a gift for IG Design Group

Quoted Beds-based creative products company IG Design Group has agreed to buy a US business in the sector for £89.7 million and raise £120m through a placing to help fund the cash element of the deal.

IG, one of the world’s leading designers, innovators and manufacturers of celebrations, gifting, stationery and creative play products, has formed a new subsidiary – Tom Merger Sub Inc – as the vehicle for the acquisition of CSS Industries, Inc., a Pennsylvania-based designer and manufacturer of craft, seasonal and gift products.

CSS is expected to deliver net sales between $346m and $352m and adjusted EBITDA of $22.1m-$24.1m for the financial year ending March 2020.

In conjunction with the acquisition, Eversholt-based IG Design intends to conduct an accelerated bookbuild placing to raise £120m gross. 

The acquisition broadens the company’s product portfolio and provides customers with a substantially enhanced one-stop-shop, establishing a leading presence within the US craft market. 

It also reinforces the group’s position as the global industry leader in gift packaging and is anticipated to yield operational and financial synergies of £10m a year by 2023.

Paul Fineman, chief executive officer of IG Design Group plc, said: “As well as doubling the scale of our US business, the combination of CSS and Design Group further strengthens our position as the global leader in consumer gift packaging and establishes us as a major supplier to the creative craft market.

“The acquisition significantly enhances the portfolio of products, brands and services that we offer to our global customer base of ‘winning’ retailers, as well as providing access to many new channels and markets.”

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