Wakefield-based greeting card and gift retailer Card Factory said it agreed to acquire online personalised card and gifting business funkypigeon.com Limited from WH Smith plc for £24 million in cash.
“The acquired business operates funkypigeon.com, an established online personalised card and attached gifting business, which is supported by its standalone team in Bristol and Guernsey,” said Card Factory.
“Over the prior two financial years, Funky Pigeon on average generated c.£32 million revenue per annum and c.£5 million EBITDA. The acquisition is subject to the receipt of any required regulatory approvals …
“The acquisition of Funky Pigeon accelerates cardfactory’s existing digital strategy, providing a platform for online growth, particularly in the direct-to-recipient card and attached gifting market.
“By combining Funky Pigeon’s digital platform with our existing omnichannel offer, cardfactory intends to leverage its 24 million unique store customers to develop a highly competitive online presence in the celebration occasions market.
“Upon completion, we will be the second largest online card and attached gift retailer in the UK market providing a great value offer to consumers across personalised cards, attached gifting and celebration essentials.
“Our vision for online is to expand our digital presence by becoming an online destination to help our customers celebrate all of life’s moments. To complement our extensive nationwide store network, our digital strategy is twofold.”
Card Factory also published a trading update, saying: “The board’s expectations of mid-to-high single-digit percentage growth in both sales and Adjusted PBT for FY26 remain unchanged. PBT will follow a similar profile to last year, with delivery significantly weighted to the second half, reflecting group sales, timing of investments and inflation mitigation actions.
“Group sales for the five months ended 30 June 2025 increased by mid-single digits year-on-year. A decision to bring forward investment in an upgraded store point of sale (PoS) till system from H2 to H1 will contribute to Adjusted PBT for the first half being slightly behind last year (H1 FY25: £14.5 million).
“With the strong H2 trading calendar ahead including Back to School, Halloween and the important Christmas season, we remain confident in our ability to deliver on full year expectations, underpinned by additional efficiencies from the PoS upgrade and our Simplify and Scale efficiency programme in H2.”
Card Factory CEO Darcy Willson-Rymer said: “This acquisition marks a significant step forward in cardfactory’s strategy to build a scaled, competitive digital presence in the celebration occasions market. It brings a high-quality platform and proven technology, accelerating our ability to compete in the direct-to-recipient card and gifting segment, so supporting our ambition to become the leading omnichannel retailer in our sector.
“Together, the enlarged customer base will benefit from a richer, more convenient customer proposition, combining the strength of our nationwide store estate and wider celebrations offer with Funky Pigeon’s exceptional digital experience. Operational efficiencies, fulfilment synergies, and a unified technology platform will provide the data needed to develop deeper insights into the customer journey, enabling us to build a stronger, more integrated omnichannel business.”