Carter's snaps up lifestyle brand Skip Hop Holdings
Children's wear company Carter's has acquired global lifestyle brand Skip Hop Holdings in a deal worth around US$140m.
Carter's has acquired the company from Fireman Capital Partners, a consumer-focused private equity firm. The company says the deal is expected to help boost its own marketing, distribution, and supply chain capabilities, thereby enabling "significant" growth for the Skip Hop brand.
Skip Hop sells products for young children that it says are differentiated from a design and function perspective. Its product portfolio includes children's apparel, backpacks, travel accessories, home gear, and hardlines. Its products are distributed across over 60 countries.
"Skip Hop has built a strong reputation for innovative, essential core products for families with young children," says Michael Casey, Carter's chairman and CEO. "Its product offering nicely complements our Carter's brand."
The acquisition of Skip Hop is expected to be accretive to Carter's fiscal 2017 adjusted earnings per share, excluding the impact of non-recurring transaction or integration-related expenses.
Michael and Ellen Diamant, founders of Skip Hop, add: "We are very excited to join the Carter's team. We believe Carter's is a terrific cultural fit for Skip Hop, and we look forward to working with Carter's to drive Skip Hop to its full potential."
The total purchase price is $140m in cash, subject to a working capital adjustment, plus a potential future payment of up to $10m contingent upon the achievement of certain fiscal targets in 2017.