New Jersey’s Russ Berrie and Co. is acquiring Costa Mesa-based baby bedding maker CoCaLo Inc. for $16 million, the company said Tuesday.
Russ Berrie is buying CoCaLo, along with New Jersey-based baby furniture maker LaJobi Industries Inc.. The deal is set to close shortly, Russ Berrie said in a statement.
CoCaLo will be folded into Russ Berrie’s I & J; Hold Co. unit, which is the company’s infant and kids business.
Russ Berrie said it could pay up to an additional $4 million to CoCaLo, depending on the company’s performance during 2008 to 2010.
Renee Pepys-Lowe, who started CoCaLo in 1998, will run CoCaLo as a separate business, and hold the title of president. She’s signed a three-year employment agreement with Russ Berrie, the company said.
“We are delighted by the opportunity to join the Russ Berrie family of infant and juvenile products companies,” CoCaLo founder Renee Pepys Lowe said in a statement. “While CoCaLo will continue to be run as a separate company, we believe Russ Berrie will provide the resources needed to further grow the CoCaLo brand globally.”
It’s unclear how long Russ Berrie has been courting CoCaLo for a buyout.
Russ Berrie, which has a market cap of about $304.7 million, is one of the largest toy and infant bedding makers.
“CoCaLo’s well-designed branded products represent a key opportunity to further extend our presence in infant bedding and accessories,” said Bruce C. Crain, Russ Berrie’s chief executive.
CoCaLo makes baby bedding and nursery accessories under the CoCaLo Baby, CoCaLo Couture and Baby Martex brands and sells them to more than 500 stores.
The company employed 25 workers in OC before the acquisition. CoCaLo generated $18.1 million in sales in 2006 and targeted $25 million in revenue last year.
