CCA announces profit dip and sale of company
personal care products, has announced a drop in profits as
executives confirm that they have agreed in principle to the
acquisition of the company.
If regulatory approval is given to the sale the new owner will be Dubilier & Company, a New York-based private investment firm. The deal will see the investment company purchasing all the outstanding common and class A common stock at $12.25 per share. Likewise, the acquisition will be subject to confirmation from the CCA board of directors and shareholders, as well as an independent opinion from financial advisors, together with proof that Dubilier can finance the acquisition. Confirmation of the deal coincides with the announcement of the company's fourth quarter and full year results, ending November 30, 2006. The company said that fourth quarter sales can in at $14.39m, compared to $14.33m for the same period in 2005. However, quarterly net income did not fair so well, coming in at $900,889 compared to $1.48m for the same period in 2005. Net sales for the full year 2006 came in at $64.1m, compared to $61.75m in 2005, while net income was $5.6m compared to $3.78m in 2005. CCA markets cosmetic and beauty aids under individual brands, mainly in the US market. These include Plus+White toothpastes and teeth whiteners, Sudden Change anti-aging, Nutra Nail growth treatments, as well as a number of hair removal products, sun protection products and perfumes. In July of last year, the company received a hostile take-over bid by investment group Costa Brava Partners, which involved an offer of $13 a share for a controlling stake in the company's Class A stock. At the time of the offer co-directors David Edell and Ira Berman said that they had no intention of selling their controlling stake in CCA.
