Baby products maker sells to Louisiana company
A local maker of products for infants and toddler has been sold.
Gonzales, Louisiana-based Crown Crafts said this week it acquired the Grand Rapids-based Sassy product line.
Crown Crafts paid a preliminary price of $6.5 million for the inventory, intellectual property and certain assets associated with the Sassy product line and assumed certain related liabilities.
The final purchase price, which will be funded from a combination of cash on hand and Crown Crafts’ existing revolving credit facility, is subject to adjustment, pending the completion of the final Sassy inventory valuation.
The acquisition is expected to contribute about $11 million in net sales annually.
“The addition of Sassy’s well-known brand of developmental baby products to Crown Crafts’ portfolio diversifies our offerings and strengthens our position in the infant and juvenile products market,” said E. Randall Chestnut, chairman, president and CEO, Crown Crafts.
“Sassy has been a dominant player in developmental toys, feeding and care for more than 30 years and will complement our existing business well. We are very excited about our opportunities for strategic growth in this new category.”
Crown Crafts plans to immediately integrate the sourcing and sales of the Sassy product line into its facility in Gonzales, while maintaining a product development office in Grand Rapids.
Through the end of fiscal year 2018, distribution will be provided by a third-party facility in Grand Rapids, where the inventory is currently located.
In the first quarter of fiscal year 2019, the company anticipates a cost of about $200,000 to move the remaining inventory and distribution facilitation to the company’s facility in Compton, California.
“Sassy has always set itself apart by creating innovative products that align with babies’ learning and developmental milestones,” said Susan Hinshaw, who will join the company from Sassy as SVP of marketing.
“We are very proud of the brand we’ve built, and we are thrilled about our opportunities for continued growth and expansion as part of the Crown Crafts team.”
D.A. Davidson & Company acted as exclusive financial advisor to Sassy on this transaction.