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8-K - FORM 8-K - CROWN CRAFTS INC | c01802e8vk.htm |
EX-2.1 - EXHIBIT 2.1 - CROWN CRAFTS INC | c01802exv2w1.htm |
EX-10.1 - EXHIBIT 10.1 - CROWN CRAFTS INC | c01802exv10w1.htm |
Exhibit 99.1
For Immediate Release | May 27, 2010 |
Crown Crafts, Inc. Acquires Bibsters® from The Procter & Gamble Company
Gonzales, Louisiana Crown Crafts, Inc. (the Company) (NASDAQ-CM: CRWS) today announced that
Hamco, Inc. (Hamco), a wholly-owned subsidiary of the Company, has acquired the
Bibsters® product, including related intellectual property, from The Procter & Gamble
Company (P&G) (NYSE: PG). Bibsters®, originally introduced by P&G in 2003, is a
disposable bib that provides coverage for infants and toddlers while feeding.
At closing, which was effective as of the close of business today, P&G assigned its intellectual
property related to the Bibsters® product to Hamco, including 26 patents and 44
trademarks which have been awarded throughout the world. In a separate but related transaction,
Hamco also acquired the inventory associated with the Bibsters® product line. Hamco
plans to integrate the distribution of the Bibsters® product line into the Companys
facilities in Compton, CA.
We are thrilled to find an opportunity that will complement last years acquisition of Neat
Solutions by expanding our business in the disposable products category, commented E. Randall
Chestnut, Chairman, President and Chief Executive Officer of the Company. Hamco already has the
overwhelming market share in reusable bibs, and we are confident that the Bibsters line of
disposable bibs will solidify Hamcos position as the overall leader in infant and toddler bibs.
We anticipate that the acquisition will result in an annual increase in our net sales of $3 million
and will be swiftly accretive to our earnings. The Bibsters customer base and channels of
distribution are consistent with those of Hamcos existing products, and we are confident that
there are additional placement opportunities for Bibsters, Mr. Chestnut continued.
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products,
including crib and toddler bedding and blankets; nursery and bath accessories; reusable and
disposable bibs and floor mats; burp cloths; room décor; and disposable placemats, toilet seat
covers and changing mats. The Companys operating subsidiaries include Crown Crafts Infant
Products, Inc. in California and Hamco, Inc. in Louisiana. Crown Crafts is Americas largest
producer of infant bedding, bibs and bath items. The Companys products include licensed and
branded collections as well as exclusive private label programs for certain of its customers. The
latest news about Crown Crafts can be found at www.crowncrafts.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such
statements are based upon managements current expectations, projections, estimates and
assumptions. Words such as expects, believes, anticipates and variations of such words and
similar expressions identify such forward-looking statements. Forward-looking statements involve
known and unknown risks and uncertainties that may cause future results to differ materially from
those suggested by the forward-looking statements. These risks include, among others, general
economic conditions, including changes in interest rates, in the overall level of consumer spending
and in the price of oil, cotton and other raw materials used in the Companys products, changing
competition, changes in the retail environment, the level and pricing of future orders from the
Companys customers, the extent to which the Companys business is concentrated in a small number
of customers, the Companys dependence upon third-party suppliers, including some located in
foreign countries, customer acceptance of both new designs and newly-introduced product lines,
actions of competitors that may impact the Companys business, disruptions to transportation
systems or shipping lanes used by the Company or its suppliers, and the Companys dependence upon
licenses from third parties. Reference is also made to the Companys periodic filings with the
Securities and Exchange Commission for additional factors that may impact the Companys results of
operations and financial condition. The Company does not undertake to update the forward-looking
statements contained herein to conform to actual results or changes in our expectations, whether as
a result of new information, future events or otherwise.
Contact:
For Hamco, Inc.:
Ms. Janet Talbot
Vice President of Sales and Marketing
Hamco, Inc.
(225) 647-9123
Vice President of Sales and Marketing
Hamco, Inc.
(225) 647-9123
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