Summer Infant, Inc. Announces Acquisition of Kiddopotamus & Company
April 21 2008 - 4:01PM
Business Wire
Summer Infant, Inc. (�Summer Infant� or the �Company�) (Nasdaq:
SUMR, SUMRW), today announced that, on April 18, 2008, it completed
the acquisition of Kiddopotamus & Company (�Kiddopotamus�), a
leading manufacturer and supplier of infant nursery, travel and
feeding accessories headquartered in Stilwell, Kansas. Kiddopotamus
manufactures a broad range of infant safety, comfort and
developmental products, including its SwaddleMe infant swaddling
blankets, which are designed to reduce the risk of Sudden Infant
Death Syndrome (�SIDS�), Snuzzler adjustable head and body supports
for car seats and strollers, and TinyDiner portable placemats. In
2007, Kiddopotamus generated sales of approximately $13.0 million.
Chris Snedeker and Kristen Peterson, the co-founders of
Kiddopotamus, will continue to manage the business, which will be
incorporated into Summer Infant�s operations. The purchase price,
which was not disclosed, was funded through available cash and
borrowings under Summer Infant�s new credit facilities and the
issuance of unregistered shares of Summer Infant�s common stock. On
April 10, 2008, Summer Infant entered into two new secured credit
facilities with Bank of America, including a $36.0 million working
capital credit facility and a $10.0 million acquisition facility,
both replacing its previous $30.0 million working capital facility.
Including the $4.0 million real estate loan that the Company has
with Bank of America, the total capacity of its borrowing
facilities is $50.0 million. �Kiddopotamus represents another
valuable addition to the Summer Infant team and product portfolio,�
commented Mr. Jason Macari, Chief Executive Officer of Summer
Infant. �We are very pleased to have Chris Snedeker and Kristen
Peterson join our company, as their operational and product
development experience at Kiddopotamus and industry expertise will
contribute greatly to our team. Over the past ten years,
Kiddopotamus has grown its product offering and emerged as a brand
of choice within its key categories. We plan to build on this solid
foundation by leveraging our vast distribution network and solid
retail customer relationships to expand its product reach and take
its operations to the next level.� �Looking ahead, the acquisition
of Kiddopotamus, along with the recent addition of Basic Comfort,
broadens our brand presence in several key high-growth categories,
including infant nursery, travel and feeding accessories. We expect
the acquisitions of these companies, which generated combined
revenues of approximately $23.0 million in 2007, to significantly
contribute to our sales growth in 2008 and beyond. Similar to our
recent Basic Comfort acquisition, we also anticipate realizing
meaningful cost synergies and expect the acquisition of
Kiddopotamus to be accretive in 2008.� Summer Infant intends to
update its full year 2008 financial guidance to reflect both the
acquisitions of Kiddopotamus and Basic Comfort on its first quarter
2008 earnings conference call. About Summer Infant, Inc. Based in
Woonsocket, Rhode Island, the Company is a designer, marketer and
distributor of branded durable juvenile health, safety and wellness
products (for ages 0-3 years), which are sold principally to large
U.S. retailers. The Company currently sells proprietary products in
a number of different categories, including nursery audio/video
monitors, safety gates, durable bath products, bed rails, infant
thermometers and related nursery, health and safety products,
booster and potty seats, soft goods, bouncers, strollers, travel
accessories, highchairs and swings. Forward Looking Statements
Certain statements in this release that are not historical fact may
be deemed �forward-looking statements� within the meaning of the
Private Securities Litigation Reform Act of 1995, and the Company
intends that such forward-looking statements be subject to the safe
harbor created thereby. These forward-looking statements relate to
information or assumptions about the acquisition of Basic Comfort,
Inc., benefits and synergies of the transaction, future
opportunities for the combined company and products and any other
statements regarding the future expectations, beliefs, goals or
prospects of the Company. These statements are accompanied by words
such as "anticipate," "expect," "project," "will," "believes,"
"estimate" and similar expressions. The Company cautions that these
statements are qualified by important factors that could cause
actual results to differ materially from those reflected by such
forward-looking statements. Such factors include the concentration
of the Company�s business with retail customers; the ability of the
Company to compete in its industry; the Company�s dependence on key
personnel; the Company�s reliance on foreign suppliers; the costs
associated with pursuing and integrating strategic acquisitions;
and other risks as detailed in the Company�s Annual Report on Form
10-K for the fiscal year ended December 31, 2007, and subsequent
filings with the Securities and Exchange Commission. The Company
assumes no obligation to update the information contained in this
presentation.
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