Summer Infant acquires BornFree
Kids Today Staff -- Kids Today, 3/29/2011 9:59:02 AM
WOONSOCKET, RI, -- Juvenile products manufacturer Summer Infant has acquired leading BPA-free baby feeding brand BornFree. Founded in 2006, BornFree distributes a portfolio of BPA-free feeding products through 19,000 retail doors worldwide. BornFree generated net sales of approximately $16 million in 2010.
"BornFree is a great strategic fit with our Company for several reasons," said Jason Macari, president and chief executive officer of Summer Infant. "Summer Infant is now entering into the $1 billion dollar worldwide feeding category which also realizes higher than average margins. Summer Infant's product development expertise, when combined with BornFree's premium product offering and brand positioning, affords the Company a solid platform for growth.
"The acquisition aligns well with the markets the company currently services both domestically and abroad, as well as provides synergy for additional expansion into new channels -- such as food and drug," continued Macari. "Financially, we project the acquisition will be slightly accretive in 2011 excluding deal fees and transition costs. Lastly, the BornFree brand and feeding product category will solidify Summer Infant's position with prenatal moms -- our core target market -- as well as our reach and add additional relevancy to this key consumer group."
The total purchase price for the acquisition was funded through a combination of Summer Infant stock and debt obtained through an amended loan deal with existing lenders that gives the Company up to $80 million of borrowing capacity, with an additional $20 million available beginning in October 2011 under an "accordion" feature. Furthermore, the former owners of BornFree may receive additional payments if certain financial targets are achieved over the next twelve months. Roth Capital Partners served as the exclusive financial advisor to BornFree.
Summer Infant currently sells proprietary products in a number of different categories, including nursery audio/video monitors, safety gates, durable bath products, bed rails, nursery products, booster and potty seats, infant bedding, bouncers, travel accessories, highchairs, swings and nursery furniture.
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