Riverdale expansion on cards

RIVERDALE Publishing, one of the leading publishers of greetings cards in the UK, has plans for further growth following a £4.7m equity investment by Aberdeen Asset Managers and Partnership Investment Finance (PIF).

PIF's support of the Silsden-based business forms part of a wider company restructuring programme designed to provide a solid financial base from which it can fully exploit future growth plans.

Aberdeen Asset Managers, which backed a management buyout of the business 18 months ago, has provided £3.7m in new equity funding, in addition to the PIF £1m equity stake.

Riverdale Publishing is one of the leading publishers of greetings cards, designing and distributing its long established brands throughout the world. It employs more than 100 full-time staff in addition to a number of freelance artists.

Riverdale's cards are distributed through a large network of specialist distributors in the UK and Ireland, independent greetings card retailers, direct to multiple retailers and other chain store groups, as well as many other stores around the globe.

Phillip Needham, chief executive of Riverdale Publishing said: “This new investment and strengthening of the company's finances is a vote of confidence in the future of Riverdale. With a significant injection of new development capital, the business now has a firm financial base from which to accelerate growth in the retail sector.

“However, we have not lost sight of the strong roots we have with our wholesale distributors. The recent acquisition of UK Card Publishing demonstrates the value we place in this important, but highly competitive part of the market. This is not only good for Riverdale; it is good for the greetings card industry, distributors, retailers and suppliers.”

The acquisition of UK Card Publishing has added well established brands to Riverdale Publishing's portfolio and Riverdale now operates in the gift, wrap and Christmas boxed sectors.

Alison Stevens, investment manager at PIF, said: “Phillip Needham and his team have put in place all the building blocks for creating a strong and robust business. Riverdale Publishing's future under his leadership looks very healthy indeed and with this investment from PIF we are confident the company will continue to thrive.”

Mr Needham added: “In the last 12 months at Riverdale we have relocated premises, outsourced all manufacturing and warehousing, acquired a competitor, injected more creativity and value into our products and made step changes to improve customer service and distribution. In addition, investment in our main retail brand Prelude has seen substantial growth in the independent sector with a corresponding increase in new accounts.”

Alex McWhirter, head of enterprise at Yorkshire Forward said: “This investment from PIF will allow Riverdale Publishing to further grow its markets in the UK and abroad. At Yorkshire Forward we are keen that other companies will take advantage of the support offered by PIF, which could help them to grow their business.”

The company and the existing shareholders were represented by law firm Wragge & Co, PIF was represented by lawyers Keeble Hawson and Vincere advised on the business plan.

PIF is part funded by the European Regional Development Fund and European Social Fund programmes. PIF's resources are a mixture of private and public finance from key partners including the European Union; the regional development agency Yorkshire Forward; Barclays Bank and YFM Group, which is the fund's contracted independent fund manager.