Louisiana-based crib and toddler bedding maker Crown Crafts Inc. unit Hamco Inc. bought Sassy 14 LLC for an initial price of $6.5 million, marking a foray into the developmental toy, feeding and baby-care businesses, Crown Crafts said Dec. 18.
Crown Crafts said the deal, which closed Dec. 15, includes the inventory, intellectual property and certain other assets of the Sassy-branded product line. The company also assumed certain related liabilities of Sassy. Based on a final valuation of Sassy's inventory, the deal value may change.
The company, which also makes blankets and toddler accessories, said it intends to fund the final deal with cash on hand and money from one of its existing revolving credit facilities. Crown Crafts expects the deal to add about $11 million in net sales annually to its earnings and to be immediately accretive.
Crown Crafts plans to immediately transfer the sourcing and sales of the Sassy product line to its own facility in Gonzales, La., from Sassy's office in Grand Rapids, Mich. It further expects to incur about $200,000 in the first quarter of fiscal 2019 to move the remaining Sassy inventory to another one of its facilities in Compton, Calif.
D.A. Davidson & Co. acted as the exclusive financial adviser to Sassy for the deal.