Flying Brands buys Greetings Direct

Jersey-based home shopping group Flying Brands has acquired Greetings Direct in a bid to grab a share of the£1.3 billion greeting card sector. Flying Brands has snapped up the firm - which trades as Cards For All Occasions - for£11.9 million, funding the deal with£2.4 million of existing cash and£9.5 million debt. Greetings Direct will form part of a larger Flying Brands gifts division, alongside Flying Flowers.

Greetings Direct sells a range of greeting cards by mail. A pack of cards is sent automatically each month to potential customers who then choose to purchase or return the package. Flying Brands said today the business was high margin, cash generative and profitable with turnover to the year ended August 31 of£8.5 million, with EBIT of£1.2 million. Estimated turnover this year is£11.8 million with EBIT of£2 million.

Flying Brands chief executive Mark Dugdale said: 'This acquisition fits our ongoing strategy perfectly. Greetings Direct has grown strongly, since it was established in 2002 and has the potential to continue this growth both in the UK and other markets.'