SAN FRANCISCO (Thomson Financial) - Russ Berrie and Co. late Tuesday said it
expects to complete shortly acquisitions of LaJobi Industries Inc. and CoCaLo
Inc.
The acquisitions are both expected to add to earnings, before any potential
synergies, the Oakland, N.J.-based infant, juvenile and gift products company
said.
LaJobi is a privately held infant furniture and related products company
based in Cranbury, N.J, and CoCaLo Inc. is a privately held infant bedding and
accessory products firm based in Costa Mesa, CA.
A new Russ Berrie unit, LaJobi Inc., will purchase LaJobi Industries Inc.
for $47 million, plus or minus a working capital adjustment. The sellers will
also be able to earn an additional payment up to $15 million based on the
compound annual growth rate of the acquired business during 2008 through 2010.
I&J HoldCo, Inc., a newly formed subsidiary of Russ Berrie, will acquire all
of the capital stock of CoCaLo for $16 million, plus or minus a working capital
adjustment. The sellers will also have the opportunity to earn an additional
payment up to $4 million based on the performance during 2008 through 2010 of
certain sales, gross profit and earnings before interest, taxes, depreciation
and amortization measures.
Separately, Russ Berrie said it swung to a fourth-quarter net loss of $8.31
milllion, or 39 cents a share, from net earnings of $1.28 million, or 6 cents a
share, a year earlier.
Revenue for the quarter ended Dec. 31 rose to $84.5 million from $73.9
million.
Russ Berrie shares closed the regular session up 34 cents at $14.40.
Brigid Gaffikin
bg/gm
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