Kids2 has entered into a definite merger agreement to acquire Summer Infant (SUMR Brands), a global leader in infant and juvenile products, along with all of its outstanding common stock.
“This acquisition is a critical move in our long-term vision and growth strategy,” says Kids 2 CEO Ryan Gunnigle. “We continue to see consolidation in our industry and macro consumer trends with the next generation of parents that require us to do more. The economies of scale and diversity of solutions that come with this acquisition will help us continue to create more tiny wins and added value for our partners and the parents we serve across the globe.”
The terms were unanimously approved by the company’s board of directors and significant stockholders including Wynnefield Capital and Jason Macari. For each share of common stock owned, stakeholders will receive $12 in cash reflecting a 41.2% premium for the closing price. Upon the completion of the transaction, the company will become privately-held and its common stock will no longer be listed on the Nasdaq Capital Market.
“We are pleased with the value creation this transaction brings to SUMR’s shareholders and believe it is beneficial to all stakeholders, as it ensures our leading brands are available and supported by a larger, broad-based global organization,” says Summer Infant CEO Stuart Noyes. “We look forward to continuing to serve our customers through exceptional products and industry-leading innovation.”
The transaction is expected to close in the second quarter of this year.
