Gibson Greetings Acquires The Ink Group of Australia

Posted on July 13, 1998

Gibson Greetings, Inc. announced it has acquired a majority interest in The Ink Group, a leading publisher of alternative greeting cards, calendars, mugs, address books and diaries based in Sydney, Australia, with operations in New Zealand and the United Kingdom. Founded in 1980, The Ink Group is the largest privately owned greeting card company in Australia and the largest publisher of "theme" calendars outside of the United States. The Ink Group also has agreements to develop product based on more than 100 licensed properties, including the 2000 Olympics to be held in Sydney. Annual revenues for The Ink Group are approximately $17.5 million ($U.S.).

Under terms of the transaction, Gibson has acquired 60% ownership of The Ink Group's operating companies in Australia and New Zealand and 100% of its subsidiary in the U.K. Gibson also will receive three positions on each of The Ink Group Boards of Directors. The Ink Group will continue to operate under its existing name and its senior management team will remain in place.

"We believe the acquisition of The Ink Group will provide several exciting new growth opportunities for Gibson's international business, where our sales during the past five years have more than tripled to approximately $25 million, and for our domestic operations as well," said Frank J. O'Connell, Gibson chairman, president and chief executive officer.