Business
Crown Crafts Acquires Manhattan Toy, a Leading Creator of Developmental Toys for Early Childhood
Acquisition expands and complements Crown Crafts’ toy offerings, customer base and international business GONZALES, La., March 20, 2023 (GLOBE NEWSWIRE) --
About this update from Crown Crafts, Inc.
[{"type":"text","content":"Acquisition expands and complements Crown Crafts’ toy offerings, customer base and international business\nGONZALES, La., March 20, 2023 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today announced that it has acquired Manhattan Group, LLC, doing business as Manhattan Toy, and its wholly owned subsidiary Manhattan Toy Europe. The acquisition expands Crown Crafts’ presence in the growing category of developmental toys for infants and toddlers. Manhattan Toy’s product offerings of plush, dolls and wooden toys will complement Crown Crafts’ existing line of Sassy toys. “The developmental toy category represents a tremendous growth opportunity as parents of young children turn away from electronics and toward more physical toys that bring joy, imagination and creativity to play,” said Olivia W. Elliott, President and Chief Executive Officer of Crown Crafts. “Manhattan Toy adds new and exciting products to our portfolio, expands our customer base and opens up new distribution channels, including international expansion. We are greatly impressed with Manhattan Toy’s operations and its excellent design team, and welcome them to the Crown Crafts team.” “At Manhattan Toy, we have always been dedicated to creating toys that promote a child’s cognitive, emotional and social development, while recognizing that the most powerful thing any of us play with in this life is our imagination,” said Nora Quinlan O’Leary, President of Manhattan Group. “We are proud of our reputation as a pioneer in the developmental toy category and all that our talented team has accomplished. We are also pleased that Crown Crafts shares our vision, and we are excited about the new growth opportunities this acquisition will bring.” The purchase price for the acquisition is $17 million and is subject to customary working capital adjustments. The purchase was funded by a combination of cash on hand and proceeds from the Company’s line of credit. The term of the line of credit has been extended from July 2025 to July 2028 and its borrowing capacity increased from $26 million to $35 million. The acquisition is expected to be accretive to earnings and will add approximately $24 million annually to the Company’s net sales. Following the acquisition, the toy category will become the largest product category within the Company’s business, represen...