Card Factory Shares (LON:CARD) Jump On FunkyPigeon Acquisition – WH Smith Dips

In a move signalling a commitment to its core business, WH Smith PLC has finalized the sale of its online greeting card subsidiary, FunkyPigeon to Card Factory.

Card Factory shares (LON: CARD) are up 8.6% on the news in early trading, whilst WH Smith (LON: SMWH) has pulled back a little over 0.7%.

The transaction, fetching an enterprise value of £26 million and an equity value of £24 million, highlights WH Smiths' pivot towards becoming a pure-play global travel retailer. Net cash proceeds, estimated at £21 million after transaction costs, are earmarked for debt reduction, further solidifying the company's financial footing. Completion of the deal is anticipated before the end of the calendar year, contingent upon customary regulatory approvals.

The sale of Funky Pigeon comes on the heels of WH Smith's earlier divestiture of its UK High Street business to Modella Capital in March 2025, a transaction valued at £76 million.

While the High Street stores are set to be rebranded as TGJones, WH Smith retains its brand for travel locations, cementing its focus on serving travelers in airports, railway stations, and other transit hubs.

The strategic shift towards travel retail is predicated on the belief that this sector offers significant growth opportunities. With over 1,200 stores across the UK, North America, and internationally, WH Smith aims to leverage its established presence in key travel locations to capture a larger share of the market.

The decision to sell Funky Pigeon, while strategically sound, also reflects the competitive pressures within the online retail space. The markets' reaction to Card Factory shares also highlights what is seen as a good acquisition for the firm.