Newark-based Baby Boom Consumer Products Inc., a leading provider in the toddler bedding and diaper bag categories, has been acquired by Crown Crafts of Louisiana for $18 million.
Baby Boom designs, sources, markets and sells high-quality and functional toddler bedding and diaper bags. In addition to its own brands, Baby Boom offers licensed products, including Bluey, Ms. Rachel, Cocomelon, Paw Patrol, Eddie Bauer and others.
“Crown Crafts is a well-known and respected company in the infant and toddler product category. We believe it is the right partner for our products and look forward to Crown Crafts’ continued growth in these market segments,” Steven Betesh, president of Baby Boom, said.
“We are excited to add Baby Boom’s portfolio of branded and licensed products to our lineup. This acquisition enhances our presence in the toddler bedding segment, and the addition of diaper bags expands our offerings to our customers. Baby Boom’s strong portfolio of licenses is very complementary to our existing lineup,” Olivia Elliott, CEO of Crown Crafts, said.
The transaction was financed through a combination of an $8 million term loan and additional borrowings under Crown Crafts’ revolving line of credit. The term loan is repayable monthly over four years. The term of the line of credit was extended from July 11, 2028, to July 19, 2029, and its borrowing capacity increased from $35 million to $40 million. The acquisition is expected to be accretive to earnings and to add approximately $20 million annually to Crown Crafts’ net sales.
D.A. Davidson & Co. served as financial adviser; Smith, Gambrell & Russell LLP served as legal adviser to Crown Crafts; and the CIT Group provided the debt financing for the transaction. Sills, Cummis & Gross P.C. served as legal adviser to Baby Boom.
