CROWN CRAFTS INC (CRWS): M&A transaction — Crown Crafts acquires Baby Boom assets for $18M cash; funds with $8M term loan

CROWN CRAFTS INC

Acquired substantially all assets of Baby Boom Consumer Products for $18M cash via subsidiary NoJo Baby, subject to working capital adjustment.
Purchase price funded by $8M term loan from CIT (48 monthly installments, SOFR+2.25%) and increased revolver capacity to $40M.
Term loan requires 50% of Excess Cash Flow prepayments within 90 days of fiscal year-end; Excess Availability must be at least 50% of outstanding term loan.
Financing Agreement amended: revolver extended to July 2029; Fixed Charge Coverage ratio of 1.15:1.0 required until term loan repaid.
$75K escrow for indemnification claims and $500K escrow for post-closing purchase price adjustments; representation and warranty insurance obtained.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

CROWN CRAFTS INC completed an acquisition involving Baby Boom Consumer Products, Inc. for $18.0 million in cash (closed 2024-07-19).

Action: acquisition
Counterparty: Baby Boom Consumer Products, Inc.
Consideration: $18.0 million in cash
Closing: 2024-07-19

Exact text from the filing

Seller and the Owners are collectively referred to in this Report as the “Seller Parties”. Pursuant to the Purchase Agreement, the purchase price for the acquistion was $18.0 million in cash (the “Purchase Price”), subject to a dollar-for-dollar adjustment to the extent that the working capital at closing is greater or less than the target working capital of

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Source: SEC EDGAR

accession 0001437749-24-023124

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