PICKERINGTON, Ohio, March 16, 2011 /PRNewswire/ -- Accessory products and slipper marketer R.G. Barry Corporation (Nasdaq: DFZ) and baggallini, Inc., have entered into a definitive agreement for R.G. Barry to acquire the principal assets of the Portland, OR-based accessory company for approximately $33.8 million.
The purchase is expected to be finalized on March 31, 2011. R.G. Barry senior management will discuss the acquisition during a special investor conference call/webcast to be held after closing.
baggallini is a privately-owned developer and marketer of functional, fashionable handbags, tote bags and travel accessories. Its products are sold primarily in North America through a network of thousands of full-price specialty and independent retailers, boutiques, travels stores, catalogs and on-line retailers. From 2006-to-2010, baggallini recorded a compounded annual revenue growth rate of approximately 19 percent.
"baggallini is our second acquisition this year; and collectively, these additions will transform our business and our future," said R.G. Barry Corporation President and Chief Executive Officer Greg Tunney. "The face of R.G. Barry immediately changes from that of a one-dimensional, modest-growth slipper company to that of a multi-faceted, growing provider of functional, fashionable accessories."Until now, our business has been almost entirely rooted in accessory footwear, which accounts for only about 2 percent of the $30-billion-plus women's accessories market. With these acquisitions, we now have established, growing businesses in the much larger handbag and foot care segments, both of which offer us significant opportunities for high growth and profitable expansion. As with our earlier acquisition, baggallini's key management will be joining our team to help us grow the business into a premier consumer brand. "Today, the total breadth of our business and our revenue and earnings productivity is greatly expanded. We have added a new, much less promotional roster of specialty and independent retailers to our already strong customer base. As a result, our business is less concentrated and the blend of products that we will be marketing will include more full-priced, higher-margin goods," Mr. Tunney said.