Lifetime Brands Announces Investment in Ekco, S.A.B.
GARDEN CITY, N.Y.--(BUSINESS WIRE)--March 9, 2007--Lifetime Brands, Inc. (Nasdaq: LCUT), a leading designer, developer and marketer of nationally branded consumer products for the home, announced today that it has entered into a letter of intent with respect to the acquisition by Lifetime of up to a 29.9% interest in Ekco, S.A.B. in exchange for a capital infusion into Ekco. Lifetime will provide Ekco with product development and other services to help Ekco accelerate its growth. In addition, Lifetime and Ekco will propose to enter into cross-licensing arrangements pursuant to which Ekco will license the Vasconia(R) brand to Lifetime and Lifetime will license certain of its brands to Ekco. Ekco will provide Lifetime with consumer and professional cookware manufactured in Ekco's plants for sale in the U.S.
Based in Mexico City, Ekco manufactures and sells cookware, bakeware, kitchenware, cutlery, dinnerware, flatware and related items. Ekco is a vertically integrated manufacturer of cookware. The company owns the worldwide rights to the Vasconia(R) trademark, the oldest kitchenware brand in Mexico, as well the rights in Mexico to the Ekco(R) trademark, one of Mexico's premier kitchenware brands. Ekco owns the rights to the Regal(R) trademark in Mexico, the H. Steele(R) trademarks, licenses the Presto(R) trademark for use in Mexico and it has exclusive distribution rights to Thermos(R) products in Mexico.
For the year ended December 31, 2006, Ekco reported net revenues of approximately $54 million. Ekco's shares are listed on the Bolsa Mexicana de Valores. On February 28, 2007, Ekco completed the acquisition of Industria Mexicana del Aluminio, S.A. de C.V. (IMASA), the largest aluminum smelter and rolling mill in Mexico. IMASA's revenues for 2006 were approximately $43 million.
Jeffrey Siegel, Chairman, President and Chief Executive Officer of Lifetime, commented, "With its well-known brands and its leading position in multiple kitchenware categories, we believe Ekco is the ideal partner for Lifetime to expand in Mexico.
"Equally important, this exciting alliance will enable Lifetime to make Ekco's products available to the growing number of Latino consumers in the United States, and will facilitate our meeting the needs of our multinational customers who want to partner with their key suppliers on a global basis, an increasingly important trend in our business."
Jose Ramon Elizondo Anaya, Ekco's President, Chief Executive Officer and Principal Shareholder, said, "Housewares markets in Latin America are underdeveloped compared to the U.S. market. With access to Lifetime's brands and product development and sourcing capabilities, Ekco will be well-positioned to move these markets forward, and to enhance its position as a leading supplier of quality products to retailers."
The transaction is subject to corporate, regulatory and governmental approvals, including approval by the Comision Nacional Bancaria y de Valores, and by Ekco's shareholders, and is subject to customary closing conditions and adjustments.
Lifetime Brands is a leading designer, developer and marketer of kitchenware, cutlery & cutting boards, bakeware & cookware, pantryware & spices, tabletop, home decor, picture frames and bath accessories. The Company markets its products under some of the country's best known brands, including Farberware(R), KitchenAid(R), Pfaltzgraff(R), Cuisinart(R), Block(R) China and Crystal, Calvin Klein(R), CasaModa(R), Cuisine de France(R), Hoffritz(R), International Silver(R), Joseph Abboud(R), Kamenstein(R), Melannco(R), Nautica(R), Pedrini(R), Rochard(R), Roshco(R), Sabatier(R), Sasaki(R), Towle(R) Silversmiths, Tuttle(R), Wallace(R), and :USE(R). Lifetime's products are distributed through almost every major retailer in the United States.
The information herein contains certain forward-looking statements including statements concerning the Company's future prospects. These statements involve risks and uncertainties, including risks relating to general economic conditions and risks relating to the Company's operations, such as the risk of loss of major customers and risks relating to changes in demand for the Company's products, as detailed from time to time in the Company's filings with the Securities and Exchange Commission.
CONTACT: Lifetime Brands, Inc.
Christian G. Kasper, 617-568-8148
Senior Vice President
chris.kasper@lifetimebrands.com
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Harriet Fried, 212-838-3777
hfried@lhai.com
SOURCE: Lifetime Brands, Inc.