Summer Infant, Inc. Announces Acquisition of Basic Comfort, Inc.
April 01 2008 - 3:01PM
Business Wire
Summer Infant, Inc. (�Summer Infant� or the �Company�) (Nasdaq:
SUMR, SUMRW), today announced that, on March 31, 2008, it completed
the acquisition of Basic Comfort, Inc. (�Basic Comfort�), a leading
manufacturer and supplier of infant comfort and safety products,
including infant sleep positioners, infant head supports and
portable changing pads. Headquartered in Denver, Colorado, Basic
Comfort was the first company to market infant sleep positioners,
which aid in the prevention of plagiocephaly (�Flat Head
Syndrome�), and has expanded its product offerings to include a
broad range of infant comfort and safety products. Basic Comfort
operates a manufacturing and distribution facility in Denver and
generated sales of approximately $10.0 million in 2007. John Lord
and Larry Jewett, the two principal officers of Basic Comfort, will
continue to manage the business, which will be incorporated into
Summer Infant�s operations under the Summer Infant brand. The
purchase price, which was not disclosed, was funded in part through
available cash and borrowings under Summer Infant�s existing credit
facility and the issuance of unregistered shares of Summer Infant�s
common stock. In connection with the acquisition, Summer Infant
amended its existing credit facility with Bank of America to
increase the aggregate amount that may be borrowed by $5.0 million,
from $25.0 million to $30.0 million. �We are very excited about the
acquisition of Basic Comfort,� commented Mr. Jason Macari, Chief
Executive Officer of Summer Infant. �Over the past twenty years,
Basic Comfort has emerged as the leading innovator in infant
accessories. We believe Basic Comfort�s products are highly
complementary and will add greatly to our existing product
portfolio. The acquisition of Basic Comfort establishes Summer
Infant as the brand of choice in this highly-fragmented,
fast-growing category. We expect to leverage Summer Infant�s strong
brand name, distribution capabilities and customer relationships to
increase the growth potential for this business going forward. In
addition, we are very pleased to have John Lord and Larry Jewett
stay on board, as their 30-plus years of industry experience
represents a valuable contribution to the Summer Infant team. We
expect this transaction to provide substantial sales and cost
synergies and to be accretive in 2008.� Summer Infant intends to
update its full year 2008 financial guidance to reflect the
acquisition of 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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