Cummer Infant Wrts (MM) (NASDAQ:SUMRW)
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From Jul 2019 to Jul 2024
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.