Russ Berrie acquires LaJobi & CoCaLo
April 04, 2008 - United States Of America
Russ Berrie and Company Inc announced that it has completed the acquisitions of LaJobi Industries Inc ("LaJobi"), a privately-held branded infant furniture and related products company based in Cranbury, N.J, and CoCaLo Inc ("CoCaLo"), a privately-held infant bedding and accessory products company based in Costa Mesa, CA.
The Company plans to maintain the individual brand identities and management structures of both LaJobi and CoCaLo.
Bruce G. Crain, Chief Executive Officer and President, commented, "We are very pleased to have completed these acquisitions and to welcome the talented personnel of both LaJobi and CoCaLo into the Russ Berrie family.
These transactions represent a major step forward in executing our disciplined acquisition strategy for our Infant & Juvenile segment and are expected to be key growth drivers for our business going forward.
We intend to leverage the design-led and branded products of these businesses to further advance our leadership in the market as we continue to capitalize on the positive trends in this industry."
The combined purchase price of the two businesses paid at closing was approximately $63.0 million, which was financed with proceeds of the Company's recently expanded senior credit facility.
Each purchase is also subject to a previously disclosed potential earnout payment. The Company expects that both acquisitions will be accretive to 2008 earnings per share before any potential synergies.
The Company also announced that it had amended and restated its Infant & Juvenile segment credit facility, which now consists of a term loan in the amount of $100 million and a revolving credit facility of up to $75 million.
As of the closing, the Company had outstanding the full amount of the term loan and approximately $31 million of the revolving credit facility.
Mr. Crain added, "Our expanded credit facility is a testament to the strength of our Infant & Juvenile business model, and will provide the financial flexibility to enable us to continue to pursue our strategic objectives."