Lifetime Brands Inc announced that its earnings per share for 2006 totaled $1.14 as compared to the $1.13 announced in its year-end press release dated March 6, 2007. The increase reflects a post-closing reduction in the purchase price for the business and certain assets of Syratech Corporation, which Lifetime acquired in April 2006, due to the conclusion of formal arbitration proceedings.
Lifetime acquired the business and certain assets of Syratech, a designer, importer, manufacturer and distributor of tabletop, home decor and picture frame products, on April 28, 2006. At closing, the Company paid $42.1 million in cash and issued 439,676 shares of the Company's Common Stock, valued at $12.5 million.
A portion of the stock was held in escrow, subject to release based on the finalization of post-closing working capital adjustments and the lapse of the indemnity provisions of the asset purchase agreement.
Determination of the final post-closing working capital adjustments relating to Syratech was the subject of formal arbitration proceedings. On March 5, 2007, a final report was issued by the arbitrator that resulted in a reduction of the total purchase price of approximately $5.7 million. As a result of this reduction, Lifetime will receive back 199,771 of the shares held in escrow at December 31, 2006.
The Company has reflected this reduction of the purchase price for Syratech and the return of shares in its consolidated financial statements included in its Form 10-K filed with the Securities and Exchange Commission on March 15, 2007.
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