IGR Ig Design Group Plc

RNS Number:4536D
International Greetings PLC
07 September 2007


International Greetings Acquires Major Competitor in USA


In line with its strategy of international expansion, International Greetings
(AIM : IGR), the leading designer and manufacturers of greetings products and
film and television based licensed stationery, is pleased to announce the
acquisition of Glitterwrap Inc., based in New Jersey, USA.

Glitterwrap is a significant and well-established business in International
Greetings' market sector. It designs, manufactures and distributes gift wrap and
party products to premium, mass market and discount retailers across the US, and
has developed an enviable reputation for innovative product design and service.

It was acquired for a total consideration of $8.45 million. Initial
consideration of $2.55 million has been paid, $1.3 million in cash and $1.25
million by the issue of 232,024 shares. Additional deferred consideration of
$5.9 million is payable over the next 30 month, of which up to $3.5 million may
be payable in shares, which are subject to lock-in agreements of two years from
dates of issue.

This acquisition provides both strategic and operational opportunities for
International Greetings' US business, increasing its customer base and extending
its product offering into the party goods sector. Glitterwrap has developed a
significant range of party products which will be distributed not only to the US
but to the Group's other customers on a world wide basis.

The current owners of Glitterwrap are staying with the enlarged US business as
Executive Directors and, in taking a significant part of the consideration in
International Greetings' shares, have demonstrated their long term commitment to
the merged business and its future potential.

The acquisition of Glitterwrap is expected to be earnings neutral in the current
financial year but is anticipated to make a significant contribution to earnings
in the next financial year.

Nick Fisher, Joint Chief Executive commented, "The Glitterwrap acquisition
represents a major step change for our US business, which together with our
existing operations will achieve combined revenues of circa $100 million and
provide a solid platform for future organic growth. This deal reinforces our
status as a global industry consolidator, and we continue to identify
acquisitions that will enhance our business and create value for our
shareholders."


Note to Editors:

International Greetings PLC is a leading designer and manufacturer of private
label wrapping paper, greetings products and film and television character based
licensed stationery. It currently has over 2,000 employees and produces gift
wrapping paper, accessories, Christmas crackers, greetings cards and other
stationery products.

The Group supplies wrapping paper and gift products to a number of global
retailers and holds licences to produce merchandise for most of the well-known
family characters, including Disney, Shrek and the Simpsons Movie.

International Greetings was founded in the UK in 1979 and, in addition to the UK
and Western Europe, has successful operations in the United States, Hong Kong,
China and Europe.


For further information:

Nick Fisher, Joint Chief Executive
International Greetings plc 01707 630630

Jeremy Carey/Rachel Drysdale
Tavistock Communications 020 7920 3150

Graeme Cull 0121 423 8960
Arden Partners plc







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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