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A.T. CROSS COMPANY ACQUIRES NATIVE EYEWEAR INC.,
THE ORIGINAL BRAND OF ALL SPORTS ALL POLARIZED EYEWEAR®
-- All-Cash Purchase Expected to be Immediately Accretive
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-- Diversifies Company’s Rapidly Growing Sport-Optical Business --
Lincoln, RI – March 24, 2008 – A.T. Cross Company (AMEX:
ATX) today announced that it has closed an all cash transaction to purchase
Native Eyewear, Inc., a leading supplier of high-quality, branded, sport performance
sunglasses and goggles. Native Eyewear, headquartered in Huntingdon Valley, Pennsylvania,
is a designer and marketer of a branded line of All Sports All Polarized® sport
performance sunglasses and goggles called “Native®,” which are distributed throughout
the United States under the Native Eyewear brand. Native’s products are distributed
through a wide range of specialty accounts, including highly respected outdoor retailers
such as REI and Eastern Mountain Sports, as well as through L.L. Bean, Paragon Sports
and Sports Chalet, to name a few. Native’s eyewear products range in retail price
points from $100 to $150.
Native will be operated as part of A.T Cross’ Optical Group Segment, which is currently
comprised of the highly successful premium priced polarized Costa Del Mar brand,
which Cross acquired in 2003. At that time, Costa had revenues of $11 million; in
2007, Costa’s revenues had grown to $37 million. The acquisition of Native demonstrates
the continued execution by A.T Cross of its stated strategies, one of which is to
acquire and operate multiple authentic sport performance sunglass brands and to
manage each brand within the sports category where the brand has roots. Costa Del
Mar’s roots and authenticity are in the marine sports category; particularly salt
and fresh water fishing, and it is now one of the most successful performance sunglass
brands in this category. Native’s roots are in the outdoor and mountain sports categories
where it has been very successful in establishing an important niche.
Native was founded by Mr. Jason Wildman in 1998. Mr. Wildman developed the Native
brand and its performance designed polarized sunglasses. The Native brand has developed
a tremendously loyal customer base in its ten year history. Native’s technologies,
integrated into its frames and lenses, have been firsts in industry developments.
Recently, Native introduced its first line of Interchangeable Polarized Snow Goggles,
which are set to hit the retail stores in September of this year.
A. T. Cross purchased Native Eyewear for total consideration of $17.8 million in
cash and the assumption of approximately $1 million of short-term debt. In 2007,
Native had revenues of approximately $11 million. Additionally, Cross commented
that the deal was expected to be immediately accretive to earnings per share and
that, based on current business trends and including expected financing and closing
costs, the deal would likely add approximately $0.07 earnings per share, after interest
costs, for the full year 2009.
On March 24, 2008, A.T. Cross Company also entered into an amended secured credit
facility which provides for borrowings of up to $35 million and expires in 2011.
Chas MacDonald, President of the Cross Optical Group and Costa Del Mar commented,
“We are extremely pleased to add the Native brand and its very talented team to
our Optical Segment. With a strong presence in the outdoor and mountain sports we
believe this new partnership will allow the brand to grow in a dramatic fashion,
similar to the exciting growth the Costa Del Mar brand has experienced since we
acquired it in 2003. We are another strong step closer to our strategic goal of
building a performance optical business that addresses the many categories of sport.
Native’s combination of strong distribution, proprietary technology, and attractive
price points, coupled with its lifestyle marketing philosophy make it a seamless
fit with our brand-building and business development strategy.”
Jason Wildman, President and Chief Executive Officer of Native Eyewear commented,
“We are very pleased to join the A.T. Cross organization. We believe that there
is an excellent opportunity to expand our distribution and grow our brand and that
the Cross organization will help us achieve those goals. The success they have had
with Costa Del Mar shows us that they have a clear path to growth and the expertise
necessary to fulfill our potential in the market.”
Dave Whalen, President and Chief Executive Officer of A.T. Cross concluded, “We
continue to execute against our stated strategies. As we incorporate Native into
our family of brands and products, we believe that there is a great opportunity
to leverage our operations and their market presence to create another strong business
under the Cross umbrella. We believe that we have broadened our opportunity to create
value for our shareholders and are energized to demonstrate the strength of the
financial and operational platform we have built.”
A.T. Cross will host a conference call at 8:30 a.m. ET on March 25, 2008. Parties
interested in participating in the conference call may dial-in at (888) 254-3563,
while international callers may dial-in at (913) 981-5549. The conference call will
be webcast here.
A recording of the conference call will be available until April 1, 2008 by dialing
(888) 203-1112 or (719) 457-0820 for international callers, and entering the passcode
of 2486339.
About A.T. Cross Company
Building on the rich tradition of its award-winning writing instruments and reputation
for innovation and craftsmanship, A.T. Cross Company is a designer and marketer
of branded personal and business accessories. Cross provides a range of distinctive
products that appeal to a growing market of consumers seeking to enhance their image
and facilitate their lifestyle. Cross products, including award-winning quality
writing instruments, leather goods, timepieces, and business accessories and Costa
Del Mar sunglasses, are distributed in retail and corporate gift channels worldwide.
For more information, visit the A.T. Cross website,
the Costa Del Mar website and the
Native Eyewear website.
Statements contained in this release that are not historical facts are forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 (including but not limited to statements relating
to the Company’s expected ability to grow Native at a rate similar to the growth
rate that Costa Del Mar experienced and the ability of the Company to leverage its
existing operations and infrastructure with Native’s operations) In addition, words
such as "believes," "anticipates," "expects," and similar expressions are intended
to identify forward-looking statements. These forward-looking statements are subject
to risks and uncertainties, including but not limited to the Company’s ability to
leverage and integrate where desirable its corporate infrastructure and the optical
Group’s ability to focus on and grow a new brand, and are not guarantees since there
are inherent difficulties in predicting future results. Actual results could differ
materially from those expressed or implied in the forward-looking statements. The
information contained in this document is as of March 24, 2008. The Company assumes
no obligation to update any forward-looking statements contained in this document
as a result of new information or future events or developments. Additional discussion
of factors that could cause actual results to differ materially from management's
expectations is contained in the Company's filings under the Securities Exchange
Act of 1934.
CONTACTS:
Kevin F. Mahoney
Vice President, Finance and
Chief Financial Officer
401-335-8470
Integrated Corporate Relations
James Palczynski
203-682-8200
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