Nitches signs definitive agreement to buy Home Décor Business
28 Jun '06
3 min read
Womenswear importer Nitches Inc has entered into a definitive agreement to acquire the Home Décor business of Taresha LLC as of July 1st 2006 in an all stock transaction.
Management expects the transaction to be immediately accretive to revenues and earnings in the fourth quarter of fiscal 2006 and beyond.
Nitches will acquire order backlog for Taresha Home Décor products of approx. $2.1 million, with an estimated $800,000 on order for shipment to customers by August 31st 2006, and the remaining $1.3 million for shipment during the first quarter of Nitches' fiscal 2007.
The Home Décor business had total sales volume of approx. $6.3 million for calendar year 2005 and is expected to exceed this total by 25 percent for calendar 2006. Traditionally almost 60 percent of Taresha's Home Décor volume is recorded in the second half of the calendar year.
Since 2002, Taresha has been designing, selling, importing, and distributing home décor products, primarily candles, candle accessories, bath décor accessories, picture frames, tabletop, and general glass décor, to many levels of distribution through company owned brands, licensed national brands, and retailer private label programs. Taresha's branded product lines include:
-- Michael Coffindaffer Home - Upscale designer candle and home decor accessory product with a 'sophisticated' point of view.
-- MC Home - Basic and seasonal candles and décor with an upscale flavor and many differentiated designs, fragrances, and fabrics.