Lifetime Brands, Inc. (NASDAQ GS: LCUT), a global provider of
branded kitchenware, tableware and other products used in the home,
today announced it has acquired Thomas Plant (Birmingham) Limited.
Trading as Kitchen Craft, Thomas Plant is one of the United Kingdom’s
leading suppliers of kitchenware products and accessories. Based in
Birmingham, the company sells products under well-known proprietary,
customer-exclusive and owned label brands. The company supplies over
2,600 customers in all classes of trade in the UK and in over 70
countries worldwide. As part of the Lifetime Brands platform, the
company will operate as a separate division under the continuing
leadership of Andrew Plant, Richard Plant and Peter Bushell.
For its fiscal year ended May 27, 2013, Thomas Plant had net revenues of
approximately $70 million.
Lifetime expects the acquisition to be accretive to its diluted earnings
per share beginning in 2014.
In connection with the acquisition, Lifetime amended and extended its
revolving credit facility and entered into a new term loan agreement.
The proceeds of the new term loan, together with borrowings under the
revolving credit facility, were used to fund the cash portion of the
purchase price and to repay the outstanding balance of the company’s
existing term loan.
Jeffrey Siegel, Lifetime’s Chairman and Chief Executive Officer,
commented,
“The acquisition of Thomas Plant represents a compelling opportunity for
Lifetime that will accelerate our growth and make Lifetime a more
effective global resource to our key retailer partners.
“Kitchen Craft’s broad ranges of kitchenware products fill a gap in our
existing UK housewares assortment that will complement the tableware and
gift assortments marketed by Creative Tops.
“We are impressed by the commitment and passion of Kitchen Craft’s
management, which has fostered a culture of quality, innovation and
outstanding customer service that is very similar to our own.
“Lifetime’s global presence, capabilities and scale will facilitate
Kitchen Craft’s growth in sales and profitability, as well as its
expansion into new markets and geographies.
“Kitchen Craft’s gross profit and EBITDA margins will enhance Lifetime’s
overall margins and help to support investments and drive profitability
across Lifetime’s product categories.
“The addition of Kitchen Craft to Lifetime’s global platform -- which
includes Creative Tops Ltd., our UK tableware and accessories business;
Lifetime Brands Canada, Grupo Vasconia SAB and GS Internacional S/A, our
partner companies in Canada, Mexico and Brazil; and our joint venture
companies in Asia -- confirms Lifetime’s position as the global leader
in the kitchenware and tableware categories.”
Andrew Plant, Kitchen Craft’s Managing Director, added,
“This is a milestone for our 164-year old business, which is known for
its portfolio of iconic kitchenware brands and its deeply loyal customer
base.
“Lifetime is known as a stable, long-term owner of businesses and this
combination provides us with the ideal platform on which to grow and to
support our customers.
“The acquisition provides us with the resources and scale necessary to
drive our future success and will further strengthen our existing
product development, sourcing and distribution capabilities.
“My family and I wish to express our deep appreciation to all our
employees, customers, suppliers and overseas business partners for their
ongoing dedication and support. We hope all will share our excitement as
we look forward to the next stage of our growth.”
The terms of the acquisition were not announced. Lifetime intends to
file a Current Report on Form 8-K on or about January 17, 2014.
Lifetime was advised by Livingstone Partners LLP, Gateley LLP and Ernst
& Young LLP.
The shareholders of Thomas Plant were advised by Clearwater Corporate
Finance LLP, Shakespeares Legal LLP and BDO LLP.
Lifetime Brands, Inc.
Lifetime Brands is a leading global provider of kitchenware, tableware
and other products used in the home. The Company markets its products
under such well-known kitchenware brands as Farberware®,
KitchenAid®, CasaMōda®, Cuisine de France®,
Fred® & Friends, Guy Fieri®, Hoffritz®,
Kizmos™, Misto®, Mossy Oak®, Pedrini®,
Roshco®, Sabatier®, Savora™ and Vasconia®;
respected tableware brands such as Mikasa®, Pfaltzgraff®,
Creative Tops®, Gorham®, International®
Silver, Kirk Stieff®, Sasaki®, Towle®
Silversmiths, Tuttle®, Wallace®, V&A®
and Royal Botanic Gardens Kew®; and home solutions brands,
including Kamenstein®, Bombay®, Elements®,
Melannco® and Design for Living™. The Company also
provides exclusive private label products to leading retailers worldwide.
Lifetime’s corporate website is www.lifetimebrands.com.
Thomas Plant (Birmingham) Limited
Founded by Thomas Plant in 1850 as a manufacturer and wholesaler of
ironmongery and household products, the company is still managed by
direct descendents of the founder. The company markets its products in
the UK and internationally under such well-recognized consumer brand
names as Kitchen Craft®, Master Class®, Colourworks®,
Sweetly Does It®, Bar Craft®, Le'Xpress®,
Let's Make®, Miniamo®, Home Made, Clearview®,
Molten®, Jury®, Kitsch'n'fun®,
Coolmovers®, Natural Elements®, Smart Silicone®,
Pure Seal® and World of Flavours®. The Company
also provides exclusive private label products to a number of leading UK
retailers.
Thomas Plant’s website is www.kitchencraft.co.uk.
Forward-Looking Statements
In this press release, the use of the words “believe,” "could,"
"expect," "may," "positioned," "project," "projected," "should," "will,"
"would" or similar expressions is intended to identify forward-looking
statements that represent the Company’s current judgment about possible
future events. The Company believes these judgments are reasonable, but
these statements are not guarantees of any events or financial results,
and actual results may differ materially due to a variety of important
factors. Such factors might include, among others, the Company’s ability
to comply with the requirements of its credit agreements; the
availability of funding under such credit agreements; the Company’s
ability to maintain adequate liquidity and financing sources and an
appropriate level of debt; changes in general economic conditions which
could affect customer payment practices or consumer spending; the impact
of changes in general economic conditions on the Company’s customers;
changes in demand for the Company’s products; shortages of and price
volatility for certain commodities; significant changes in the
competitive environment and the effect of competition on the Company’s
markets, including on the Company’s pricing policies, financing sources
and an appropriate level of debt.
Copyright Business Wire 2014