Lifetime Brands to Acquire Stake in Ekco, S.A.B.
GARDEN CITY, N.Y.--(BUSINESS WIRE)--June 11, 2007--Lifetime Brands, Inc. (Nasdaq: LCUT), a leading designer, developer and marketer of nationally branded consumer products for the home, today announced it has signed a definitive agreement to purchase a 29.99% interest in Ekco, S.A.B. for approximately $21.9 million, based upon the estimated closing date and current exchange rate.
One of Mexico's leading housewares companies, Ekco manufactures and sells cookware, bakeware, kitchenware, cutlery, dinnerware, flatware and related items under the Ekco(R), Vasconia(R), Regal(R), H. Steele(R), Presto(R) and Thermos(R) brands. Shares of Ekco's capital stock are traded on the Bolsa Mexicana de Valores, S.A. de C.V., (the Mexican Stock Exchange), under the symbol BMV: EKCO.
Jeffrey Siegel, Chairman, President and Chief Executive Officer, commented, "We are pleased to be moving forward with our investment in Ekco, whose well-known brands and leading position in multiple kitchenware categories make it the ideal partner for Lifetime to expand in Mexico. The alliance, for which we entered into a letter of intent in March, will enable Ekco to introduce products under our brands in Mexico and in other Latin American markets; and will enable us to develop and market products specifically focused on the needs of the growing community of Latino customers here in the U.S. Lifetime will market products in the U.S. and Canada under the Vasconia brand, the oldest kitchenware brand in Mexico. In addition, the alliance will help Lifetime meet the needs of our multinational customers who want to partner with their key suppliers on a more global basis."
The proceeds from Lifetime's investment will be applied by Ekco toward the financing of its acquisition earlier this year of one of the largest aluminum smelter and rolling mills in Mexico, Industria Mexicana del Aluminio, S.A. de C.V.
The agreement provides for Lifetime to appoint four new members to Ekco's 11-person Board of Directors. The agreement provides mechanisms whereby Lifetime would be able to acquire 100% ownership of Ekco or, conversely, to require Ekco to repurchase its stake.
Lifetime anticipates the transaction will close before the end of September 2007. The transaction is subject to government, regulatory and corporate approvals and conditions.
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(R) Silver, 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.