Crown Crafts Acquires the Assets of Baby Boom Consumer Products
Crown Crafts, Inc. (NASDAQ-CM: CRWS) has acquired substantially all assets of Baby Boom Consumer Products for $18 million. This acquisition enhances Crown Crafts' presence in the toddler bedding category and expands its product lineup to include diaper bags. Baby Boom offers branded and licensed products, including popular characters like Bluey and Paw Patrol.
The deal was financed through an $8 million term loan and additional borrowings from Crown Crafts' revolving line of credit. The acquisition is expected to be accretive to earnings and add approximately $20 million annually to Crown Crafts' net sales. The company's revolving line of credit has been extended to July 19, 2029, with an increased borrowing capacity of $40 million.
Crown Crafts, Inc. (NASDAQ-CM: CRWS) ha acquisito sostanzialmente tutti gli asset di Baby Boom Consumer Products per 18 milioni di dollari. Questa acquisizione aumenta la presenza di Crown Crafts nella categoria di biancheria per bambini e amplia la sua gamma di prodotti includendo borse per pannolini. Baby Boom offre prodotti a marchio e in licenza, tra cui personaggi popolari come Bluey e Paw Patrol.
L'accordo è stato finanziato tramite un prestito a termine di 8 milioni di dollari e ulteriori prestiti dalla linea di credito revolving di Crown Crafts. Si prevede che l'acquisizione sarà accretiva per gli utili e porterà circa 20 milioni di dollari all'anno alle vendite nette di Crown Crafts. La linea di credito revolving dell'azienda è stata estesa fino al 19 luglio 2029, con una capacità di prestito aumentata a 40 milioni di dollari.
Crown Crafts, Inc. (NASDAQ-CM: CRWS) ha adquirido sustancialmente todos los activos de Baby Boom Consumer Products por 18 millones de dólares. Esta adquisición fortalece la presencia de Crown Crafts en la categoría de ropa de cama para niños y amplía su línea de productos para incluir bolsos para pañales. Baby Boom ofrece productos con marca y con licencia, incluyendo personajes populares como Bluey y Paw Patrol.
El acuerdo fue financiado a través de un préstamo a plazo de 8 millones de dólares y préstamos adicionales de la línea de crédito revolving de Crown Crafts. Se espera que la adquisición sea acumulativa para las ganancias y sume aproximadamente 20 millones de dólares anuales a las ventas netas de Crown Crafts. La línea de crédito revolving de la empresa se ha extendido hasta el 19 de julio de 2029, con una capacidad de préstamo aumentada a 40 millones de dólares.
Crown Crafts, Inc. (NASDAQ-CM: CRWS)는 Baby Boom Consumer Products의 대부분 자산을 1,800만 달러에 인수했습니다. 이번 인수는 Crown Crafts의 유아 침구 카테고리 내 입지를 강화하고 기저귀 가방을 포함한 제품 라인을 확장합니다. Baby Boom은 Bluey 및 Paw Patrol과 같은 인기 캐릭터를 포함한 브랜드 및 라이센스 제품을 제공합니다.
이번 거래는 800만 달러의 기간 대출과 Crown Crafts의 회전 신용라인에서 추가 대출로 자금이 조달되었습니다. 이 인수는 이익에 기여할 것으로 예상되며 yearly 약 2천만 달러의 Crown Crafts 순매출을 추가할 것으로 보입니다. 회사의 회전 신용라인은 2029년 7월 19일까지 연장되었으며, 대출 한도는 4천만 달러로 증가했습니다.
Crown Crafts, Inc. (NASDAQ-CM: CRWS) a acquis substantiellement tous les actifs de Baby Boom Consumer Products pour 18 millions de dollars. Cette acquisition renforce la présence de Crown Crafts dans la catégorie de literie pour tout-petits et élargit sa gamme de produits pour inclure des sacs à couches. Baby Boom propose des produits de marque et sous licence, y compris des personnages populaires tels que Bluey et Paw Patrol.
L'accord a été financé par un prêt à terme de 8 millions de dollars et des emprunts supplémentaires de la ligne de crédit renouvelable de Crown Crafts. On s'attend à ce que l'acquisition soit accrétive pour les bénéfices et ajoute environ 20 millions de dollars par an aux ventes nettes de Crown Crafts. La ligne de crédit renouvelable de l'entreprise a été prolongée jusqu'au 19 juillet 2029, avec une capacité d'emprunt augmentée à 40 millions de dollars.
Crown Crafts, Inc. (NASDAQ-CM: CRWS) hat substanziell alle Vermögenswerte von Baby Boom Consumer Products für 18 Millionen Dollar erworben. Diese Akquisition stärkt die Präsenz von Crown Crafts in der Kategorie der Kinderbettwäsche und erweitert das Produktangebot um Windeltaschen. Baby Boom bietet marken- und lizenzierten Produkte an, darunter beliebte Figuren wie Bluey und Paw Patrol.
Das Geschäft wurde durch einen 8 Millionen Dollar langen Darlehen und zusätzliche Kredite aus der revolvierenden Kreditlinie von Crown Crafts finanziert. Es wird erwartet, dass die Akquisition die Gewinne steigern und jährlich etwa 20 Millionen Dollar zu den Nettoumsätzen von Crown Crafts beitragen wird. Die revolvierende Kreditlinie des Unternehmens wurde bis zum 19. Juli 2029 verlängert, mit einer erhöhten Kreditaufnahme von 40 Millionen Dollar.
- Acquisition expected to be accretive to earnings
- Projected $20 million annual increase in net sales
- Expansion into toddler bedding and diaper bag categories
- Addition of strong licensed product portfolio
- Increased borrowing capacity from $35 million to $40 million
- Increased debt with $8 million term loan and additional borrowings
- Potential integration challenges with newly acquired assets
Insights
The acquisition of Baby Boom Consumer Products by Crown Crafts is a strategic move that appears financially sound. By adding Baby Boom's well-regarded toddler bedding and diaper bag products, Crown Crafts is diversifying its portfolio, which may help stabilize revenue streams. The purchase price of
This acquisition strengthens Crown Crafts' market position in the toddler bedding and diaper bag sectors, which are competitive and growing markets. Baby Boom's portfolio includes several high-value licenses like Bluey and Paw Patrol, which are extremely popular and have strong brand loyalty. This can enhance Crown Crafts' market share and provide cross-selling opportunities. Expanding into diaper bags diversifies their product offerings, making the company less reliant on any single category. Given the well-respected brands in Baby Boom's portfolio, Crown Crafts is poised to leverage these licenses to drive consumer demand and achieve economies of scale.
The legal aspects of this acquisition seem well-structured. D.A. Davidson & Co. served as the financial advisor, while Smith, Gambrell & Russell, LLP provided legal advice to Crown Crafts, indicating a solid advisory team was in place. The transaction involved customary working capital adjustments, which is standard in such deals to ensure fair valuation. The extension of the revolving line of credit's term and increased borrowing capacity indicate well-negotiated terms that allow Crown Crafts to maintain operational flexibility. Overall, the legal framework provides a robust foundation for integrating Baby Boom's assets and minimizing post-acquisition risks.
Acquisition Enhances Crown Crafts’ Presence in the Toddler Bedding Category and Expands Lineup of Product Offerings
GONZALES, La., July 22, 2024 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) (“Crown Crafts” or the “Company”) today announced that it has acquired substantially all of the assets of Baby Boom Consumer Products, Inc. (“Baby Boom”), a leading provider in the toddler bedding and diaper bag categories.
Baby Boom designs, sources, markets and sells high-quality and functional toddler bedding and diaper bags. In addition to its own brands, Baby Boom offers licensed products, including Bluey, Ms. Rachel, Cocomelon, Paw Patrol, Eddie Bauer and others.
“We are excited to add Baby Boom’s portfolio of branded and licensed products to our lineup. This acquisition enhances our presence in the toddler bedding segment, and the addition of diaper bags expands our offerings to our customers. Baby Boom’s strong portfolio of licenses is very complementary to our existing lineup,” said Olivia Elliott, Chief Executive Officer of Crown Crafts.
Crown Crafts paid
“Crown Crafts is a well-known and respected company in the infant and toddler product category. We believe it is the right partner for our products and look forward to Crown Crafts’ continued growth in these market segments,” said Steven Betesh, President of Baby Boom.
D.A. Davidson & Co. served as financial advisor; Smith, Gambrell & Russell, LLP served as legal advisor to Crown Crafts; and The CIT Group provided the debt financing for the transaction. Sills, Cummis & Gross P.C. served as legal advisor to Baby Boom.
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, bibs, toys and disposable products. The Company operates through its two wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler and juvenile products under Company-owned trademarks, as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores and juvenile specialty stores. For more information, visit the Company’s website at www.crowncrafts.com.
About Baby Boom Consumer Products
Founded in 1988 and headquartered in Newark, New Jersey, Baby Boom Consumer Products designs, sources, markets, and sells high-quality and functional diaper bags and toddler bedding. Its product offering includes diaper bags, crib bedding, baby blankets, nursery décor, travel accessories, and soft bath products.
Forward-Looking Statements
The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates,” “will” and variations of such words and similar expressions identify such forward-looking statements. The forward-looking statements in this press release do not constitute guarantees of future performance and include, without limitation, statements regarding the anticipated benefits of the Company’s acquisition of substantially all of the assets of Baby Boom, including enhanced market presence, expanded product offerings and a complimentary license portfolio; expectations regarding the acquisition’s impact on the Company’s growth, earnings and net sales; and the potential value and synergies that the acquisition may provide to the Company.
Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, the Company’s ability to realize the potential benefits of its acquisition of the assets of Baby Boom; potential disruptions to the operations of the Company due to the acquisition, the distraction of management and other risks related to the Company’s integration of Baby Boom’s products, business and team; the Company’s ability to retain Baby Boom’s key personnel; unexpected or increased charges, expenses or costs resulting from the acquisition; potential adverse reactions or changes to business relationships resulting from the announcement and completion of the acquisition; general economic conditions, including changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products; changing competition; changes in the retail environment; the Company’s ability to successfully integrate newly acquired businesses generally; the level and pricing of future orders from the Company’s customers; the extent to which the Company’s business is concentrated in a small number of customers; the Company’s dependence upon third-party suppliers, including some located in foreign countries; customer acceptance of both new designs and newly-introduced product lines; actions of competitors that may impact the Company’s business; disruptions to transportation systems or shipping lanes used by the Company or its suppliers; and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.
Contact:
Craig J. Demarest
Vice President and Chief Financial Officer
(225) 647-9118
cdemarest@crowncrafts.com
Investor Relations:
Three Part Advisors
Steven Hooser, Partner, or John Beisler, Managing Director
(817) 310-8776
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