Baby clothes maker Carters (NYSE:CRI) has inked a deal to acquire Canadian childrens apparel retailer Bonnie Togs for $98 million in an effort to expand its presence in international markets.
Carters, which owns the OshKosh Bgosh brands, will acquire all outstanding stock of Bonnie Togs for $62 million in cash. The remaining $36 million will be paid upon attainment of certain earnings objectives over a four-year period.
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Bonnie Togs, which operates 59 retail stores in Canada, already sells clothes under the Carters and OshKosh Bgosh brands. The company, which booked sales last year of roughly $100 million, has been Carters principal licensee in Canada since 2007 and is the companys most significant international licensee.
We are excited to add this successful, high-growth retail business and experienced management team to our company, Carters CEO Michael Casey said in a statement. We see significant potential for growth in Canada, with an opportunity to operate approximately 160 stores contributing total annual revenues of more than $200 million by 2016.
The largest branded retailer for babies clothes said the deal adds to its long-term strategy of extending the reach of its brands to consumers in markets outside of the U.S.
The transaction is slated to close within 45 days.