Make Do - 04 Nov 2014

PhotoBox agrees to acquire Hofmann, Spanish provider of photo books

Acquisition will mark a further step in European market expansion by PhotoBox

Deal currently under review and dependent upon satisfaction of CNMC (Spanish competition authority) regulatory approval 

  • Acquisition accelerates the Group’s international development
  • Gives PhotoBox #1 spot in Spain and supports its market presence in Germany
  • Represents significant opportunity to drive sales of existing Group products to Hofmann’s ‘photo-centric’ customer base

London/Valencia – November, 4th 2014 –PhotoBox Group, parent of the PhotoBox, Moonpig, PaperShaker and Sticky9 brands, is pleased to announce that is has reached an agreement to acquire Hofmann, Spain’s online photobook company, subject to regulatory approval and various other conditions. This acquisition follows the June 2014 securing by PhotoBox of a revolving credit facility to finance M&A deals, and marks another key milestone in our strategy to expand in the European market. The acquisition will enhance our footprint in two of the most important European markets – Spain and Germany – meaning that the Group will generate over 50% of its revenues outside of the United Kingdom, increasing our international reach. In turn, this will give us the opportunity to bring our passion for personalisation to a whole new, even bigger customer base.

Founded in 1923 in Valencia (Spain), Hofmann has built an excellent market position in the online personalised printing space. To give a flavour of Hofmann, its offering and achievements to date:

  • The Hofmann team has developed a well know brand and built an excellent market position in Spain, Europe’s 5th largest country [1] in photobook market volume, with 48% [2] share of this market (2012 data)
  • Hofmann has developed its business outside of Spain, with a significant presence in Germany, Austria and Switzerland via its Posterjack brand
  • Hofmann has generated a robust revenue profile with 2014 revenues expected to be approximately €40m

A perfect fit: a shared mission, great customer base and well-known photo-centric brand

The acquisition supports the Group’s and Hofmann’s shared mission to bring personalisation to more people around the world, particularly in Europe where we have long recognised an opportunity to expand and accelerate the development of this exciting market.

We intend to maintain the Hofmann brand in Spain and leverage group synergies in particular by:

  • Offering the market’s-top product range from PhotoBox in particular in the wall décor and gifting categories, to Hofmann customers
  • Accelerating Hofmann’s mobile offering with PhotoBox’s suite of iOS and Android apps as well as other mobile offerings
  • Leveraging the combined Group’s industrial capabilities for better efficiency and quality

Commenting on the transaction, PhotoBox Group Chief Executive Officer, Stan Laurent, said:

“PhotoBox is making yet another big step to scale its business, renew its leadership and leverage its successful marketing, product and technology platforms across Europe. Hofmann is a superb match, bringing an additional successful business and a well-known brand to the family. Together, we will accelerate the deployment of innovative products and mobile services to help Spanish & German-speaking customers share their memories with their loved ones through beautiful personalised products. We look forward to clearing regulatory approvals and closing this transaction.”

For further information please contact:

FTI Consulting, LLP                                                                                    +44 (0) 20 3727 1000
Matt Dixon / Ollie Pratt

PhotoBox Group                                                                                        +44 (0) 20 7087 4621
Stan Laurent, CEO
Cecilia Vincent, Head of Communications

About PhotoBox Group
The PhotoBox Group is a leading digital consumer service for personalised products and gifts in Europe and parent of the flagship branded retail channels PhotoBox, Moonpig.com, Sticky9 and Paper-Shaker.com. From photobooks and unique artwork to the very latest personalised apparel, gifts and greeting cards, the Group’s products enable customers across 20 countries to share memories, celebrate great moments and inject personal expression into their everyday lives. The Group has 700 employees across Europe, generated turnover of £175.3m in the fiscal year ending April 2014 and is backed by leading international private equity firms including Insight Venture Partners, Index Ventures, Highland Capital Partners, HarbourVest Partners, Quilvest Ventures and Greenspring Associates.

Ends

[1] FutureSource, Photobook Market Report, Western Europe (December 2013)

[2] FutureSource, Photobook Market Report, Western Europe (December 2013)