Lifetime Brands to Acquire Assets of Syratech Corporation; Acquisition Furthers Lifetime's Tabletop Strategy by Significantly Expanding Its Presence in Flatware
WESTBURY, N.Y., Mar 08, 2006 (BUSINESS WIRE) -- Lifetime Brands, Inc. (NASDAQ NM: LCUT), a leading designer, marketer and distributor of nationally branded consumer products for the home, today announced it has signed an agreement to acquire the business and certain assets of Syratech Corporation, a major designer, importer and manufacturer of a diverse portfolio of tabletop, home decor and picture frame products. Syratech's sales for 2005 were approximately $138 million.
Founded in 1986, Syratech owns many key brands in home fashion, including Wallace Silversmiths(R), Towle Silversmiths(R), International Silver Company(R), Melannco International(R) and Elements(R). In addition, Syratech licenses the Cuisinart(R) brand for tabletop products and recently secured the license for Kenneth Cole Reaction Home(R). The company's products are broadly distributed through better department stores, specialty stores, big box retailers warehouse clubs, and catalogs.
"The acquisition of Syratech's proprietary and licensed flatware brands, which are among the most distinctive and recognized in the industry, complements Lifetime's other notable tabletop brands," said Jeffrey Siegel, Lifetime's Chairman, President and Chief Executive Officer. "Syratech's portfolio includes brands with a long, rich history within the sterling silver and stainless steel flatware market, as well as many top new designers known for their style and innovation.
"Among many other benefits, the transaction furthers our expansion into the better tabletop business, which we entered last year when we acquired certain tabletop assets from Salton, Inc. In addition, it gives Lifetime an entree into several promising new product categories, positioning us as a leader in the $500 million market for picture frames and photo albums and giving us an immediate presence in the home decor market.
"Equally important, Syratech shares Lifetime's strong commitment to innovative design. The acquisition will enable us to augment our current team of 55 designers with another 20 highly qualified and experienced professionals. The combined design staff of 75 professionals will enable Lifetime to greatly increase the number of new products brought to market each year."
Assuming that the transaction closes in April, Lifetime expects the Syratech business to contribute approximately $100 million in revenues in 2006 and to be nominally profitable for the year. The transaction is subject to customary closing conditions and adjustments.
Lifetime is a leading designer, marketer and distributor of kitchenware, cutlery & cutting boards, bakeware & cookware, pantryware & spices, tabletop and bath accessories, marketing its products under various trade names, including Farberware(R), KitchenAid(R), Pfaltzgraff(R), Calvin Klein(R), Cuisinart(R), Hoffritz(R), Sabatier(R), Nautica(R), Joseph Abboud Environments(R), Roshco(R), Baker's Advantage(R), Kamenstein(R), CasaModa(TM), and :USE(R). Lifetime's products are distributed through almost every major retailer in the United States.
he 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.
SOURCE: Lifetime Brands, Inc.
Lifetime Brands, Inc.
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