Craftmade Broadens Outdoor Product Offering
Craftmade International Inc. enters into an agreement with Woodard LLC and CC Industries to acquire substantially all of the assets of Woodard LLC, a designer, manufacturer and distributor of a broad line of outdoor furniture products and related accessories. Under the terms of the purchase agreement, Craftmade will acquire all plant, property and assets for the purchase price, subject to a post-closing working capital adjustment, of $19.3 million plus warrants to purchase 200,000 shares of common stock. Completion of the acquisition, which is subject to a number of customary closing conditions, is expected to close on or about January 2, 2008. James R. Ridings, Craftmade's chairman and chief executive officer, says, "We continue to look for ways to diversify our strong product offering and be less reliant on new home construction while leveraging our core marketing and distribution competencies. The Woodard acquisition will be a strategic addition to our fast-growing outdoor product lines, and will allow us entry into the growing hospitality market, expand our retail customer base, and add a new independent distribution channel.