Carter's, Inc. to Acquire Children's Retailer in Canada

Carter's, Inc. CRI today announced that it has entered into a definitive agreement to acquire Bonnie Togs, a children's apparel retailer based in Toronto, Canada, for total consideration of up to approximately $98 million. Bonnie Togs is a Canadian specialty retailer focused exclusively on the children's apparel and accessories marketplace. Bonnie Togs generated net sales in the twelve-month period ended May 2011 of approximately CAD $100 million, which reflects an increase of approximately 30% over the previous twelve-month period. Bonnie Togs operates 59 retail stores in Canada and sells products under the Carter's and OshKosh B'gosh brands, as well as other private label and national brands. Bonnie Togs has been Carter's principal licensee in Canada since 2007 and is the Company's most significant international licensee. In addition to its 37 Bonnie Togs branded retail stores, Bonnie Togs also operates 22 Carter's/OshKosh B'gosh stores, which offer consumers these leading U.S. children's apparel brands in one convenient location. The acquisition of Bonnie Togs is expected to be accretive to Carter's fiscal 2011 adjusted earnings per share, excluding the impact of non-recurring purchase accounting-related charges. “The acquisition of Bonnie Togs is an important component of our long-term strategy to extend the reach of our Carter's and OshKosh B'gosh brands to consumers in international markets,” said Michael D. Casey, Carter's Chairman and Chief Executive Officer. “We are excited to add this successful, high-growth retail business and experienced management team to our company. 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.”