PICKERINGTON, Ohio, Jan. 28, 2011 /PRNewswire/ -- Accessory footwear and slipper marketer R.G. Barry Corporation (Nasdaq: DFZ) today announced that it has completed the purchase of substantially all of the assets of Foot Petals, LLC., a Long Beach, California-based developer and marketer of premium insoles and products that offer comfort solutions to many common footwear-related problems. R.G. Barry will operate Foot Petals as a subsidiary.
"As the innovator and leader of premium insoles, Foot Petals is an excellent addition to our brand portfolio," said R.G. Barry Corporation President and Chief Executive Officer Greg Tunney. "It is a growing business that generates very healthy returns. Its management team, led by Tina Aldatz, is young, aggressive and has done an amazing job building a successful, category-leading business in less than a decade.
"Our product lines, customer bases and core values have numerous synergies. For example, Foot Petals' products are now sold through key top-tier retailers like Nordstrom and Dillard's. The brand has a very bright future as an integral part of our long-range vision and strategic growth plan."
Ms. Aldatz, Foot Petals founder and President, added, "This is a pivotal moment in the evolution of the Foot Petals brand. We are incredibly excited by the opportunities for our business to grow as part of the R.G. Barry organization. Our companies share a common heritage and similar visions. Both were founded by women who saw unfulfilled comfort needs in the marketplace and developed creative solutions. Our companies have grown from those simple ideas into the recognized leaders in their respective fields. Most significantly, both companies continue to innovate and lead.""The purchase of Foot Petals for $14 million cash is consistent with our acquisition filter," said R.G. Barry Corporation Senior Vice President Finance and Chief Financial Officer Jose Ibarra. "The business generates positive cash flow and will be immediately accretive to earnings. We believe the Foot Petals brand will grow into an important component of our total business." R.G. Barry senior management will discuss the Foot Petals purchase during its regular quarterly earnings teleconference/webcast scheduled for 9 a.m. EST on Tuesday, February 8. To listen via the Internet, log on to http://www.videonewswire.com/event.asp?id=75820. The conference call also will be available at 800.860.2442 (U.S.) and +1.412.858.4600 (international) until five minutes before starting time. Financo, Inc. served R.G. Barry Corporation as a financial advisor for the transaction.