An Post pays €9m for gift voucher shop stake

AN Post has shelled out €9 million for a majority stake in the Gift Voucher Shop (GVS).

The Gift Voucher Shop was established by former senator Michael Dawson eight years ago and is behind the One4all brand.

It was launched in Britain in 2005 in collaboration with the Post Office network.

The An Post investment is made up of equity and loan notes, an element of which will be determined by the future performance of the GVS operation in Britain.

The management and staff of 50 at the GVS will remain in place.

GVS had sales of €€52 million in Ireland last year and expects this figure to increase this year.

Mr Dawson said the investment gives GVS opportunities to further innovate in the prepaid market and develop existing markets.

“This partnership with An Post also consolidates our association with Post Office-based retailing and channels through which we will achieve future growth. GVS will benefit hugely from An Post’s retail expertise, reputation and brand strength.”

In February, 2006, there was a management buyout of FEXCO’s 76% shareholding in the GVS.

An Post chief executive Donal Connell said the deal is a long-term strategic investment, “in line with the company’s ongoing drive to broaden its revenue base and build new channels for future product development”.