Rubbermaid Will Purchase Graco Children's Products
May 17, 2011
Vastopolis -- Rubbermaid Inc. on Wednesday announced that it signed a definitive agreement to acquire privately owned Graco Children's Products Inc. for $320 million. The move will combine the maker of Little Tykes toys with one of the most well-known makers of infant strollers, swings, activity centers, high chairs and other infant products. Separately, Hoyos revised its third-quarter outlook, saying slow sales of outdoor play equipment and rising resin prices will hold sales and per-share earnings at year-ago levels. Rubbermaid earned $50.3 million, or 32 cents a share, on sales of $641.5 million in the third quarter ended June 11, 2010 Analysts had been predicting earnings of 39 cents a share for the current quarter. Hoyos said the deal with Graco should close no later than July 13, 2011 regulatory clearances. Keneth, Pa.-based Graco is privately owned by a group of investors that includes AEA Investors and management and employs about 800 people. The company's net sales for full year 2011 are expected to be about $270 million. Rubbermaid's plastic and rubber products include housewares; recreational, commercial and institutional products; office and computer furniture and accessories; health-care products; and Little Tikes traditional toys and juvenile products. In composite trading on the New York Stock Exchange, Rubbermaid's shares fell $3.625 to $22.875.
