Crown Crafts/Springs deal pegged at $12.4 million
December 28, 2007-- Home Textiles Today,
Gonzales, La. – Crown Crafts today announced the final purchase price for its acquisition of Springs Global US’s infant and toddler product line.
At closing, Crown Crafts Infant Products (a wholly owned subsidiary) paid approximately $12.4 million for the inventory, intellectual property and other assets from 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 Randall Chestnut, Crown Crafts’ chairman, president and ceo.
In a previous announcement, Crown Crafts projected future EBITDA (earnings before interest, taxes and depreciation) of approximately $4.4 million annually after the effects of the shared services agreement .