Lifetime Brands Acquires S’well®

Rhea-AI Summary

Lifetime Brands, Inc. (NasdaqGS: LCUT) has acquired the business and select assets of S’well Bottle, a leading designer of reusable hydration products, enhancing its portfolio in sustainable kitchenware. Founded in 2010, S’well is recognized for its innovative vacuum-insulated bottles and has a strong e-commerce presence. This acquisition is expected to contribute approximately $4.5 million in annualized EBITDA once fully integrated. The transition is projected to be completed in Q2 2022, with S’well’s founder continuing in an advisory role.

Positive

• Acquisition of S’well enhances Lifetime’s portfolio in sustainable hydration products.
• Expected contribution of $4.5 million in annualized EBITDA post-integration.
• Expansion of direct-to-consumer offerings through S’well's established e-commerce channels.
• Increased corporate partnership opportunities providing new revenue channels.

Negative

• Integration challenges may arise during the transition process.
• Dependence on e-commerce performance for achieving projected EBITDA.
• Risks associated with market conditions and consumer purchasing practices.

GARDEN CITY, N.Y., March 03, 2022 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (NasdaqGS: LCUT), a leading global provider of kitchenware, tableware and other products used in the home, today announced that it has acquired the business and certain assets of Can’t Live Without It (d/b/a S’well Bottle).

Founded in 2010, S’well is a global designer, wholesaler and retailer of reusable, vacuum-insulated products. It is best known for creating the first, reusable hydration fashion accessory. S’well's products can be purchased through omnichannel retail partners, specialty stores, co-branded partnership opportunities, and its own direct-to-consumer website, www.swell.com.

Rob Kay, Lifetime’s Chief Executive Officer, commented, “We are extremely pleased to welcome the S’well brand to our portfolio. S’well originated the category of sustainable hydration products and has consistently been a design, feature and product innovator. The brand is a perfect fit for our growing and successful hydration and storage categories, where we have already made great progress growing our BUILT brand. S’well’s established e-commerce presence will expand our direct-to-consumer offering and its significant corporate partnership business will open up a new and attractive channel for Lifetime. Additionally, S’well’s recognition as a leader in sustainability helps reinforce our commitment in this important area. We expect this highly complementary addition to our portfolio to have an accretive impact on our earnings beginning in 2022.”

Sarah Kauss, the visionary founder of S’well, will oversee the transition to Lifetime Brands and continue in an advisory role, said “I’m so proud of what S’well has accomplished over the years. We created a movement around reusables, helped displace more than 4 billion single-use plastic bottles and touched millions of lives. With this transition into the Lifetime family, the S’well brand will continue to deliver beautiful, innovative products while being a force for good.”

Terms of the acquisition were not disclosed. The Company believes that once fully integrated into Lifetime’s operations, a process expected to be completed in the second quarter of 2022, S’well will contribute approximately $4.5 million of annualized EBITDA.

Canaccord Genuity Sawaya Partners acted as exclusive financial advisor to S’well in connection with this transaction. Greenberg Traurig, LLP provided legal counsel to S’well. Morgan, Lewis & Bockius LLP provided legal counsel to Lifetime Brands.

Lifetime Brands, Inc.

Lifetime Brands is a leading global designer, developer and marketer of a broad range of branded consumer products used in the home. The Company markets its products under well-known kitchenware brands, including Farberware®, KitchenAid®, Sabatier®, Amco Houseworks®, Chef’n® Chicago™ Metallic, Copco®, Fred® & Friends, Houdini™, KitchenCraft®, Kamenstein®, La Cafetière®, MasterClass®, Misto®, Swing-A-Way®, Taylor® Kitchen, and Rabbit®; respected tableware and giftware brands, including Mikasa®, Pfaltzgraff®, Fitz and Floyd®, Empire Silver™, Gorham®, International® Silver, Towle® Silversmiths, Wallace®, Wilton Armetale®, V&A®, Royal Botanic Gardens Kew® and Year & Day®; and valued home solutions brands, including BUILT NY®, Taylor® Bath, Taylor® Kitchen, Taylor® Weather and Planet Box®. The Company also provides exclusive private label products to leading retailers worldwide.

Forward-Looking Statements

This press release may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” "could," "expect," "may," "positioned," "project," "projected," "should," "will," "would" or similar expressions identify forward-looking statements that represent the Company’s current judgment about possible future events. Forward-looking statements are subject to certain risks and uncertainties that could cause the Company’s actual results to differ materially from its historical experience and our present expectations or projections. These risks include, but are not limited to, the negative impacts of, and continuing uncertainties associated with the scope, severity and duration of the global COVID-19 pandemic and any resurgences of the pandemic; market conditions and by global and economic conditions (including, without limitation, conflict or war); inflation or deflation in supply chain costs; the imposition of tariffs and other trade policies and/or economic sanctions implemented by the U.S. and other governments; risks relating to competition; risks relating to customer purchasing practices and changes in the retail industry and environment; our ability to successfully integrate the S’well business; and other risks discussed in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2020 and our subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements.

Non-GAAP Financial Measure

This press release includes a reference to EBITDA as a forward-looking non-GAAP financial measure. The Company is not providing a quantitative reconciliation with respect to this forward-looking non-GAAP measure in reliance on the “unreasonable efforts” exception set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, unusual, one-time, non-ordinary, or non-recurring costs, cannot be reasonably estimated.

Source: Lifetime Brands, Inc.

Lifetime Brands, Inc.
Laurence Winoker, 516-203-3590
Chief Financial Officer
investor.relations@lifetimebrands.com

FAQ

What did Lifetime Brands acquire?

Lifetime Brands acquired the business and certain assets of S’well Bottle, known for its reusable hydration products.

What is the expected EBITDA contribution from S’well?

S’well is expected to contribute approximately $4.5 million in annualized EBITDA once fully integrated.

When is the integration of S’well expected to be completed?

The integration of S’well into Lifetime Brands is projected to be completed in the second quarter of 2022.

How will this acquisition impact Lifetime Brands?

The acquisition is anticipated to enhance Lifetime's position in the sustainable hydration market and expand its direct-to-consumer and corporate partnership channels.

Who will oversee the transition of S’well to Lifetime Brands?

Sarah Kauss, the founder of S’well, will oversee the transition and continue in an advisory role.