Crown Crafts, Inc. acquired Manhattan Group LLC from H Enterprises International, Inc. for $17 million.
March 19, 2023
Share
Crown Crafts, Inc. (NasdaqCM:CRWS) acquired Manhattan Group LLC from H Enterprises International, Inc. for $17 million on March 17, 2023. The acquisition is cash-free, debt-free basis. A portion of the Purchase Price: (i) equal to $1.7 million was deposited into an escrow account for certain indemnification claims which may be made by Crown Crafts; and (ii) equal to 20% of Manhattan Toys?s accounts receivable (net of reserves) as of the closing was deposited into an escrow account for post-closing Purchase Price adjustments for the collection of the accounts receivable. The Purchase Price was funded by the Company using a combination of cash on hand and proceeds from the Company?s line of credit with The CIT Group/Commercial Services, Inc.
In connection with the acquisition of Manhattan Toy, Crown Crafts and CIT amended the Financing Agreement, dated as of July 11, 2006, as thereafter amended, between the Company, its subsidiaries and CIT, to extend the term of the line of credit from July 2025 to July 2028 and to increase the borrowing capacity thereunder from $26.0 million to $35.0 million. The amendment also adds MTC and MTE as parties to the Financing Agreement. The acquisition is expected to be accretive to earnings and will add approximately $24 million annually to Crown Crafts's net sales.
D.A. Davidson & Company acted as the exclusive financial advisor to Manhattan Group and H Enterprises International, Inc. on this transaction. William A. Jonason of Dorsey & Whitney LLP acted as legal advisor to H Enterprises. David G. Thunhorst of Smith, Gambrell & Russell, LLP acted as legal advisor to Crown Crafts.
Crown Crafts, Inc. (NasdaqCM:CRWS) completed the acquisition of Manhattan Group LLC from H Enterprises International, Inc. for $17 million on March 17, 2023. The purchase price of $17 million, subject to adjustments for cash at the Closing Date and to the extent that actual net working capital as of the Closing Date differs from target net working capital of $13.75 million.
Crown Crafts, Inc. designs, markets, and distributes infant, toddler and juvenile consumer products. It operates through its four subsidiaries, NoJo Baby & Kids, Inc., Sassy Baby, Inc., Manhattan Group, LLC, and Manhattan Toy Europe Limited in the infant, toddler and juvenile products segment. Its infant, toddler and juvenile products segment consists of infant and toddler bedding and blankets, bibs, soft bath products, disposable products, developmental toys and accessories. Its primary focus is on infant, toddler, and juvenile products, including infant and toddler bedding, blankets and swaddle blankets, nursery and toddler accessories, room decor, reusable and disposable bibs, burp cloths, hooded bath towels and washcloths, reusable and disposable placemats and floor mats, disposable toilet seat covers and changing mats, developmental toys, feeding and care goods and other infant, toddler and juvenile soft goods. It serves mass merchants, restaurants, and chain stores, among others.
CROWN CRAFTS, INC. 
