PICKERINGTON, Ohio, April 2, 2013 /PRNewswire/ -- Accessory products marketer R.G. Barry Corporation (Nasdaq: DFZ) announced today it has integrated the operations of its former China-based sourcing agent into its baggallini business unit.
The integration brings the extensive expertise of the privately-owned sourcing entity in all phases of handbag development, sourcing and supply to RG Barry's internal handbag-business platform.
As part of the transaction, RG Barry also acquired the principal working assets of the Hong Kong-based Mosey Co., Ltd., and the Mosey consumer fashion handbag brand.
"From a purely strategic standpoint, this is an exciting addition to our growing handbag coalition and to our future," said R.G. Barry Corporation President and Chief Executive Officer Greg Tunney. "It institutionalizes within our business a wealth of expertise in sourcing a product category that we expect to grow to the size of our accessory footwear business within the next 3-to-5 years."
"This action adds significant core strength, experience and knowledge to our current China-based sourcing team, while reducing duplication and costs within our handbag sourcing model," he said.
"Functions in both China and Portland that fall under this transaction will be consolidated within our existing baggallini operations," added R.G. Barry Corporation Senior Vice President Finance and Chief Financial Officer Jose Ibarra. "As with our past acquisitions, RG Barry will benefit from backroom synergies. We expect all functions to be fully integrated by our fiscal year-end."
The transaction was completed for $1.2 million cash.
About RG Barry RG Barry develops great accessories brands that provide fashionable, solution-oriented products that touch consumers. Our primary brands include: Dearfoams slippers dearfoams.com; baggallini handbags, totes and travel accessories baggallini.com; and Foot Petals premium insoles and comfort products footpetals.com. To learn more, visit us at rgbarry.com.
Forward-Looking Statements Some of the disclosures in this news release contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as "may," "expect," "could," "should," "anticipate," "believe," "estimate," or words with similar meanings. Any statements that refer to projections of our future performance, anticipated trends in our business and other characterizations of future events or circumstances are forward-looking statements. These statements, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, are based upon our current plans and strategies and reflect our current assessment of the risks and uncertainties related to our business. These risks include, but are not limited to: our continuing ability to source products from third parties located within and outside North America; competitive cost pressures; the loss of retailer customers to competitors, consolidations, bankruptcies or liquidations; shifts in consumer preferences; the impact of the global financial crisis and general economic conditions on consumer spending; the impact of the highly seasonal nature of our footwear business upon our operations; inaccurate forecasting of consumer demand; difficulties liquidating excess inventory; disruption of our supply chain or distribution networks; our ability to implement new enterprise resource information systems; a failure in or a breach of our operational or security systems or infrastructure, or those of our third-party suppliers and other service providers, including as a result of cyber-attacks; the unexpected loss of any of the skills and experience provided by our senior officers; our ability to successfully integrate any new business acquisitions; and our investment of excess cash in certificates of deposit and other variable rate demand note securities. You should read this news release carefully because the forward-looking statements contained in it (1) discuss our future expectations; (2) contain projections of our future results of operations or of our future financial condition; or (3) state other "forward-looking" information. The risk factors described in "Item 1A. Risk Factors" of Part I of our Annual Report on Form 10-K for the fiscal year ended June 30, 2012 (the "2012 Form 10-K") and our other filings with the Securities and Exchange Commission (the "SEC"), give examples of the types of uncertainties that may cause actual performance to differ materially from the expectations we describe in our forward-looking statements. If the events described in "Item 1A. Risk Factors" of Part I of our 2012 Form 10-K occur, they could have a material adverse effect on our business, operating results and financial condition. You should also know that it is impossible to predict or identify all risks and uncertainties related to our business. Consequently, no one should consider any such list to be a complete set of all potential risks and uncertainties. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the statement is made to reflect unanticipated events, except as required by applicable law. Any further disclosures in our filings with the SEC should also be considered.
SOURCE R.G. Barry Corporation