NEW BERLIN, Wis.--(BUSINESS WIRE)--FIRSTIME DESIGN LIMITED (FTDL) today announced the completion of the acquisition of all of the issued and outstanding membership interests of InnerSpace Luxury Products, LLC, a distributor of high quality custom bedding and home goods with a strong online and e-commerce platform. The acquisition, which was unanimously approved by the board of directors from both companies, results in InnerSpace becoming a wholly owned subsidiary of FTDL.
Before synergies, we expect the combined gross revenues to exceed $14 million with combined EBITDA exceeding $1 million. The Company expects that sales and profits will increase as a result of the acquisition as we take advantage of synergies. The transaction was led by management of FTDL and members of FTDL’s Capitol Allocation Committee, with support from Dash Holdings LLC, Schenk SC, Foley and Lardner LLP, and Baker Tilly.
Christopher Bering, Chief Executive Officer of FTDL, commented, “The completion of the acquisition of InnerSpace is an enormous opportunity for the parties involved. Our continual goal to increase shareholder value over the next 3 and 5-year cycles remains paramount. We developed the Capital Allocation Committee, in part, to find ways to augment the ~$15 million in tax loss carry forwards the company holds. FirsTime and InnerSpace share a similar business model, which allows for a streamlined integration process and lowered costs in administrative and operational areas. Furthermore, InnerSpace brings new product lines, alternative markets and innovative sales channels that will diversify our overall capabilities.”
Andrew Bass, a member of FTDL’s Board of Directors who led the Capital Allocation Committee for FTDL stated, “FirsTime has significantly broadened its product offering, and through the integration process, we will be able to provide crossover synergies to both entities. Significant increases in sales and profits is exciting, but it’s only the beginning in our long term strategy to provide growth and value to our shareholders.”
Bering closed by saying, “FirsTime remains committed to executing its long-term strategies; increasing revenues over market cycles; building profitable growth and maintaining its commitment to growing shareholder value.”
About FirsTime Design Limited
FirsTime Design Limited, through its subsidiary, FirsTime Manufactory, Inc., is an industry leading designer, marketer and distributor of decorative home décor products sold through major-national retailers and e-commerce channels. More information can be found at: www.firstimeonline.com or http://www.otcmarkets.com/stock/FTDL/quote.
Cautionary Statement Regarding Forward-Looking Statements
This document contains certain forward-looking statements about FirsTime and InnerSpace, including statements that involve risks and uncertainties concerning FirsTime’s acquisition of InnerSpace and general business outlook. When used in this document, the words "anticipates", "can", "will", "look forward to", "expected" and similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of FirsTime, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this document due to a number of risks and uncertainties. Potential risks and uncertainties include, among others, the possibility that the anticipated synergies of the combined companies may not be achieved after closing, the combined operations may not be successfully integrated in a timely manner, if at all, general economic conditions in regions in which either company does business, and the possibility that FirsTime or InnerSpace may be adversely affected by other economic, business, and/or competitive factors. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of FirsTime or InnerSpace.