Card Factory acquires Funky Pigeon from WH Smith
Card Factory has agreed to acquire online personalised greeting cards business Funky Pigeon from WH Smith for £24 million.
The retailer said the move will accelerate its digital strategy by providing a platform for online growth, particularly in the direct-to-recipient card and attached gifting market. Over time, Card Factory expects the Funky Pigeon platform to become the core digital platform for its own UK and Ireland business.
Supported by a standalone team in Bristol and Guernsey, Funky Pigeon on average generated around £32 million in revenue per annum and £5 million EBITDA over the previous two financial years.
Darcy Willson-Rymer, Card Factory chief executive, said: “This acquisition marks a significant step forward in Card Factory’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.”
He added: “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.
“The board and wider Card Factory team look forward to welcoming Funky Pigeon colleagues to the group.”
WH Smith has agreed to sell Funky Pigeon following a strategic review and the earlier sale of its high street business to Modella Capital as it looks to focus on travel retail.
In a statement, WH Smith said: “The group is now a pure play global travel retailer, well positioned to capture the substantial global growth opportunities in its key markets and drive enhanced shareholder value.”
Giving an update on current trading, Card Factory said its expectations of mid-to-high single-digit percentage growth in both sales and adjusted pre-tax profit for FY26 remain unchanged. It added that group sales for the five months to 30 June increased by mid-single digits year-on-year.
