Crown Crafts Pays $12.4M in Springs Deal
January 7, 2008-- Home Textiles Today,
Crown Crafts announced the final purchase price paid for its acquisition of Springs Global US's infant and toddler product line was about $12.4 million.
At closing, Crown Crafts Infant Products (a wholly owned subsidiary) paid approximately $12.4 million for the inventory, intellectual property and other assets associated with the Springs product lines 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 previous statements, Crown Crafts projected future EBITDA (earnings before interest, taxes and depreciation) from the acquired lines of approximately $4.4 million annually after the effects of the shared services agreement, and a positive "annualized net sales impact" of as much as $25 million.
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