Card Factory has entered the US market with a strategic acquisition, marking a significant milestone for the UK retailer.
- The company acquired Minnesota-based Garven Holdings for $25m (£20m), strengthening its presence in the $70bn US celebration industry.
- Garven Holdings, known for its design and wholesale of gifts, aligns with Card Factory’s growth strategy.
- Key executives Anne Schulze and Walter Jungbauer will continue leading Garven Holdings.
- The acquisition is part of Card Factory’s strategy to leverage design and buying synergies and introduce its products in the US market.
Card Factory, a leading UK retailer, has solidified its presence in the United States by acquiring Garven Holdings, a Minnesota-based firm, for $25m (£20m). This move marks a pivotal step in its international growth strategy, providing a significant foothold in the $70 billion US celebration market. The acquisition aims to accelerate Card Factory’s ambitious partnerships strategy, focusing on expanding into key global markets.
Garven Holdings operates under well-known brands like Garven Design and Cadence Packaging, specializing in the design and wholesale of gifts and celebration essentials. This acquisition provides an opportunity for Card Factory to explore design and buying synergies within Garven’s established customer base, which includes both general and specialty retailers. There is also potential for Card Factory to introduce its own product lines into the competitive US wholesale market.
Prominent executives from Garven Holdings, including Anne Schulze and Walter Jungbauer, will remain in their current roles to continue guiding the business. Their leadership is anticipated to ensure a smooth transition and help retain the trust of Garven’s existing customers, fostering both ongoing and new business relationships.
Card Factory’s CEO, Darcy Willson-Rymer, emphasized the acquisition’s strategic importance, stating, “The acquisition of Garven is a crucial milestone in our partnerships strategy. With a separate wholesale supply agreement in place, covering over 1,100 US stores, the acquisition establishes a firm physical presence in the US market. Garven’s reputation for quality and design excellence makes this an exciting opportunity for Card Factory.”
The announcement also included an update on Card Factory’s current trading performance. Despite the dynamic market conditions, the company reported that the second half of the year has met expectations, with a strong start to the Christmas trading season and ongoing productivity and efficiency initiatives. The firm remains optimistic yet cautious for the upcoming peak trading periods, such as Christmas.
Card Factory’s acquisition of Garven Holdings strategically positions the UK retailer for success in the US market.
