Crown Crafts Announces Final Purchase Price for Springs Infant and Toddler Product Line
December 24 2007 - 7:00AM
PR Newswire (US)
GONZALES, La., Dec. 24 /PRNewswire-FirstCall/ -- Crown Crafts, Inc.
("Crown Crafts" or the "Company") (NASDAQ:CRWS) today announced the
final purchase price for its acquisition, through its wholly-owned
subsidiary, Crown Crafts Infant Products, Inc., of the infant and
toddler product line of Springs Global US, Inc. ("Springs"). At
closing, the Company paid approximately $12.4 million for the
inventory, intellectual property and certain other assets
associated with the Springs' infant and toddler product line and
assumed certain liabilities. The final purchase price, which was
subject to adjustment pending the completion of the final inventory
valuation, was $11.0 million, a reduction of $1.4 million. "The
Company is very excited about the future of this product category,"
said E. Randall Chestnut, Chairman, President and Chief Executive
Officer of the Company. "As we reported earlier, a projected future
EBITDA (Earnings before interest, taxes and depreciation) of
approximately $4.4 million annually after the effects of the shared
services agreement versus a final purchase price of $11.0 million
presents a significant opportunity for the Company." About Crown
Crafts Crown Crafts, Inc. designs, markets and distributes infant
consumer products, including bedding, blankets, bibs, bath items
and accessories. Its subsidiaries include Hamco, Inc. in Louisiana
and Crown Crafts Infant Products, Inc. in California. Crown Crafts
is America's largest distributor of infant bedding, bibs and bath
items. The Company's products include licensed and branded
collections as well as exclusive private label programs for certain
of its customers. This release contains forward-looking statements
within the meaning of the Securities Act of 1933, the Securities
Exchange Act of 1934 and the Private Securities Litigation Reform
Act of 1995. Such statements are based upon management's current
expectations, projections, estimates and assumptions. Words such as
"expects," "believes," "anticipates" and variations of such words
and similar expressions identify such forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties that may cause future results to differ materially
from those suggested by the forward-looking statements. These risks
include, among others, general economic conditions, including
changes in interest rates, in the overall level of consumer
spending and in the price of oil, cotton and other raw materials
used in the Company's products, changing competition, changes in
the retail environment, the level and pricing of future orders from
the Company's customers, the Company's dependence upon third-party
suppliers, including some located in foreign countries, customer
acceptance of both new designs and newly-introduced product lines,
actions of competitors that may impact the Company's business,
disruptions to transportation systems or shipping lanes used by the
Company or its suppliers, and the Company's dependence upon
licenses from third parties. Reference is also made to the
Company's periodic filings with the Securities and Exchange
Commission for additional factors that may impact the Company's
results of operations and financial condition. The Company does not
undertake to update the forward-looking statements contained herein
to conform to actual results or changes in our expectations,
whether as a result of new information, future events or otherwise.
DATASOURCE: Crown Crafts, Inc. CONTACT: Olivia Elliott, Secretary -
Treasurer of Crown Crafts, Inc., +1-225-647-9124; or Halliburton
Investor Relations, +1-972-458-8000 Web site:
http://www.crowncrafts.com/
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