Cummer Infant Wrts (MM) (NASDAQ:SUMRW)
Historical Stock Chart
From May 2019 to May 2024
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.