Summer Infant buys Basic Comfort baby products

WOONSOCKET – Summer Infant Inc. has completed its acquisition of Basic Comfort Inc., a Denver-based maker of infant comfort and safety products, the company said last night. The purchase price was not disclosed.
The transaction, which closed March 31, was financed with a combination of cash and borrowing, Summer Infant said. In connection with the deal, the company increased its existing line of credit with Bank of America to $30.0 million from the previous $25.0 million.
Basic Comfort operates a manufacturing and distribution facility in Denver and generated about $10.0 million in sales last year, Summer Infant said. The first company to market baby sleep positioners, it has since expanded its line to a wide range of infant accessories.
John Lord and Larry Jewett, the Denver company’s principal officers, will continue to manage the business under the Summer Infant name.
“We are very excited about the acquisition of Basic Comfort,” Jason Macari, Summer Infant’s CEO, said in a statement.
“Over the past 20 years, Basic Comfort has emerged as the leading innovator in infant accessories. We believe Basic Comfort’s products are highly complementary and will add greatly to our existing product portfolio.
“The acquisition of Basic Comfort establishes Summer Infant as the brand of choice in this highly-fragmented, fast-growing category. We expect to leverage Summer Infant’s strong brand name, distribution capabilities and customer relationships to increase the growth potential for this business going forward.
“In addition, we are very pleased to have John Lord and Larry Jewett stay on board, as their 30-plus years of industry experience represents a valuable contribution to the Summer Infant team. We expect this transaction to provide substantial sales and cost synergies and to be accretive in 2008.”
Summer Infant intends to update its full-year 2008 financial guidance to reflect the acquisition when it holds its first-quarter conference call, the company said.
Summer Infant Inc. (Nasdaq: SUMR, SUMRU, SUMRW) is the parent of Summer Infant (USA) Inc., Summer Infant Europe Ltd. and Summer Infant Asia Ltd. (collectively, the “Summer Infant Operating Companies”), which design and make audio-video monitors, safety gates, bed rails, infant thermometers, booster and potty seats and other infant and toddler products. To learn more, visit www.summerinfant.com.