A day after posting solid fourth quarter results, Lifetime Brands has received a takeover bid from private investment firm Mill Road Capital Management, LLC.
In a letter sent to the board of directors of Lifetime Brands, Mill Road said it was submitting an offer to acquire all shares of the company for $20 per share. The Greenwich, CT-base investment firm currently owns in excess of 10% of Lifetime Brands, according to the letter.
Scott Scharfman, Mill Road’s Management Committee director, said in the correspondence to Lifetime Brands, “As one of the company’s largest stockholders, we have always been highly impressed with the company and its management team. We think Jeff Siegel has done an outstanding job as CEO and leads a strong and deep bench of talented people.”
He added, “We know the company well and are prepared to commence negotiation of definitive agreements and business, financial, and legal due diligence immediately.
Lifetime Brands officials were not immediately available for comment.
The takeover bid comes a day after Lifetime Brands reported solid fourth quarter gains in revenue and income. For the period ended December 31, 2016, consolidated net sales were $193.5 million, up 4.1% from the comparable quarter the previous year. Net income was $14.7 million, or $1 per diluted share, as compared to $11 million, or $0.77 per diluted share, in the prior year.
