R.G. Barry Corp. has added to its portfolio again, this time with a developer and marketer of handbags and travel accessories.
The Pickerington, Ohio-based firm said Wednesday it will acquire the principal assets of Baggallini, based in Portland, Ore., for roughly $33.8 million, in a deal to be finalized on March 31, 2011.
Baggallini marks R.G. Barry’s second acquisition this year (it bought Foot Petals in January), and is in line with the company’s plan to diversify its business into the handbag and foot care segments, both of which offer “significant opportunities for high growth and profitable expansion,” the firm’s president and CEO, Greg Tunney, said in a statement.
“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,” he added. “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.”
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Jose Ibarra, SVP of finance and CFO of R.G. Barry, said Baggallini is asset light, cash generating and will be immediately accretive to earnings. The brand’s key management will also stay on board to help grow the business into a premier consumer brand, the firm added.
From 2006 to 2010, Baggallini recorded a compounded annual revenue growth rate of about 19 percent. Its products are sold primarily in North America through a network of full-price specialty and independent retailers, boutiques, travel stores, catalogs and online retailers.