CIT Commercial Services Provides Up to $48 Million in Financing to Crown Crafts
First Citizens Bank's CIT Commercial Services unit has provided up to $48 million in financing to Crown Crafts Inc. (NASDAQ-CM: CRWS), a major producer of infant and toddler bedding and accessories. The financing package includes a $5 million upsize to a $40 million committed ABL revolving line of credit and an $8 million term loan. Crown Crafts used part of this financing to acquire the assets of Baby Boom Consumer Products, expanding its presence in the toddler bedding segment and adding diaper bags to its product line. This financing deal extends CIT's 20-year-plus relationship with Crown Crafts, supporting the company's growth strategy.
La divisione CIT Commercial Services di First Citizens Bank ha fornito fino a 48 milioni di dollari in finanziamenti a Crown Crafts Inc. (NASDAQ-CM: CRWS), un importante produttore di biancheria e accessori per neonati e bambini piccoli. Il pacchetto di finanziamento include un incremento di 5 milioni di dollari a una linea di credito rotativa ABL da 40 milioni di dollari e un prestito a termine di 8 milioni di dollari. Crown Crafts ha utilizzato parte di questo finanziamento per acquisire gli attivi di Baby Boom Consumer Products, espandendo la propria presenza nel segmento della biancheria per bambini e aggiungendo borse per pannolini alla propria linea di prodotti. Questo accordo di finanziamento estende la relazione di oltre 20 anni di CIT con Crown Crafts, sostenendo la strategia di crescita dell'azienda.
La unidad CIT Commercial Services de First Citizens Bank ha proporcionado hasta 48 millones de dólares en financiamiento a Crown Crafts Inc. (NASDAQ-CM: CRWS), un importante productor de ropa de cama y accesorios para bebés y niños pequeños. El paquete de financiamiento incluye un incremento de 5 millones de dólares a una línea de crédito rotativa ABL de 40 millones de dólares y un préstamo a plazo de 8 millones de dólares. Crown Crafts utilizó parte de este financiamiento para adquirir los activos de Baby Boom Consumer Products, ampliando su presencia en el segmento de ropa de cama para niños pequeños y añadiendo bolsas para pañales a su línea de productos. Este acuerdo de financiamiento extiende la relación de más de 20 años de CIT con Crown Crafts, apoyando la estrategia de crecimiento de la empresa.
퍼스트 시티즌스 뱅크의 CIT 상업 서비스 부문이 4,800만 달러의 자금 조달을 Crown Crafts Inc. (NASDAQ-CM: CRWS)에 제공했습니다. 이 회사는 아기와 유아용 침구 및 액세서리의 주요 생산업체입니다. 자금 조달 패키지에는 500만 달러 증가가 포함된 4,000만 달러 규모의 ABL 회전 신용 한도와 800만 달러의 만기 대출이 포함되어 있습니다. Crown Crafts는 이 자금의 일부를 사용하여 Baby Boom Consumer Products의 자산을 인수하며 유아 침구 부문에서의 입지를 확대하고 기저귀 가방을 제품 라인에 추가했습니다. 이 자금 조달 계약은 CIT와 Crown Crafts 간의 20년 이상의 관계를 지속하며 회사의 성장 전략을 지원합니다.
La division CIT Commercial Services de First Citizens Bank a accordé jusqu'à 48 millions de dollars de financement à Crown Crafts Inc. (NASDAQ-CM: CRWS), un important producteur de literie et d'accessoires pour bébés et tout-petits. Le paquet de financement comprend un ajout de 5 millions de dollars à une ligne de crédit renouvelable ABL de 40 millions de dollars et un prêt à terme de 8 millions de dollars. Crown Crafts a utilisé une partie de ce financement pour acquérir les actifs de Baby Boom Consumer Products, élargissant sa présence dans le segment de la literie pour tout-petits et ajoutant des sacs à couches à sa gamme de produits. Cet accord de financement prolonge la relation de plus de 20 ans entre CIT et Crown Crafts, soutenant la stratégie de croissance de l'entreprise.
Die CIT Commercial Services Einheit der First Citizens Bank hat bis zu 48 Millionen Dollar an Finanzierungen an Crown Crafts Inc. (NASDAQ-CM: CRWS) bereitgestellt, einen wichtigen Hersteller von Bettwäsche und Zubehör für Säuglinge und Kleinkinder. Das Finanzierungspaket umfasst eine Erhöhung um 5 Millionen Dollar zu einer verbindlichen ABL-Kreditlinie von 40 Millionen Dollar sowie ein 8 Millionen Dollar Darlehen. Crown Crafts nutzte einen Teil dieser Finanzierung, um die Vermögenswerte von Baby Boom Consumer Products zu erwerben und somit seine Präsenz im Bereich der Kleinkinderbettwäsche zu erweitern und Windeltaschen in sein Produktportfolio aufzunehmen. Dieses Finanzierungsabkommen verlängert die über 20-jährige Beziehung zwischen CIT und Crown Crafts und unterstützt die Wachstumsstrategie des Unternehmens.
- Secured up to $48 million in financing from CIT Commercial Services
- Acquired assets of Baby Boom Consumer Products, expanding product portfolio
- Increased committed ABL revolving line of credit by $5 million
- Obtained $8 million term loan
- Extended long-term relationship with CIT Commercial Services
- None.
Insights
Crown Crafts' strategic move to secure up to
The acquisition of Baby Boom Consumer Products' assets is a smart strategic move for Crown Crafts. It not only strengthens their position in the toddler bedding segment but also diversifies their product portfolio by adding diaper bags. This expansion could potentially lead to increased market share and revenue streams.
From a financial perspective, the use of asset-based lending (ABL) and factoring services indicates that Crown Crafts is leveraging its accounts receivable and inventory effectively. This approach can provide more favorable terms compared to traditional bank loans, especially for companies in the consumer goods sector with seasonal sales patterns.
However, investors should closely monitor how efficiently Crown Crafts integrates Baby Boom's assets and whether the acquisition translates into improved financial performance. The key metrics to watch in upcoming quarters will be revenue growth, profit margins and return on invested capital.
The infant and toddler products market is experiencing significant shifts and Crown Crafts' latest move demonstrates a keen awareness of these trends. By acquiring Baby Boom Consumer Products' assets, Crown Crafts is positioning itself to capitalize on the growing demand for toddler bedding and diaper bags.
This strategic expansion is timely, considering the following market dynamics:
- The global baby care products market is projected to grow at a CAGR of
5.5% from 2021 to 2026. - There's an increasing preference for branded and licensed products in the infant and toddler segment, which aligns with Baby Boom's portfolio.
- The diaper bag market is evolving, with parents seeking more stylish and functional options, presenting a growth opportunity for Crown Crafts.
The company's long-standing relationship with CIT Commercial Services (over 20 years) suggests a strong track record and credibility in the industry. This partnership could provide Crown Crafts with a competitive edge in terms of financial flexibility and speed in responding to market opportunities.
Investors should keep an eye on how Crown Crafts leverages this acquisition to expand its retail partnerships and e-commerce presence, as these channels are becoming increasingly important in the baby products market.
The financing, which included a
"The addition of Baby Boom's portfolio of branded and licensed products enhances our presence in the toddler bedding segment, and the addition of diaper bags expands our offerings to our customers," said Olivia Elliott, Chief Executive Officer of Crown Crafts. "We appreciated the expertise and flexibility of the CIT Commercial Services team in arranging this financing to help us achieve our business goals."
"We are excited to extend our 20-year-plus relationship with Crown Crafts by providing this latest financing," said Mike Hudgens, president of CIT Commercial Services. "Their acquisition of the assets of Baby Boom Consumer Products is another milestone in Crown Crafts' growth trajectory and we look forward to continuing to serve their financing needs in the future."
CIT Commercial Services, a subsidiary of First Citizens Bank, is one of the nation's leading providers of factoring, credit protection, accounts receivable management, supply chain finance and lending services to domestic middle market companies.
About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in
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.
MEDIA RELATIONS:
John M. Moran
212-461-5507
john.moran2@firstcitizens.com
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SOURCE First Citizens Bank
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