DELRAY BEACH, FLA. - Empire of Carolina Inc. announced July 10 it has completed its acquisition of most of the toy production assets of New York-based Buddy L Inc. Empire, headquartered in Delray Beach, acquired two of Buddy L's three production plants in upstate New York and one in Beauport, Quebec, with injection and blow molding and extrusion capacity.
Empire spokeswoman Lisa Bradlow did not disclose which of the New York plants, in Gloversville, Mayfield and Amsterdam, were part of the deal. Buddy L also subcontracted toy manufacturing in the Far East.
Empire's main toy operation is Carolina Enterprises in Tarboro, N.C. It also has manufacturing plants in California and Florida that make seasonal decorative products and other items. Bradlow said it is too early to know if Empire will consolidate any of its plastics operations.
Empire will issue to Buddy L creditors 756,667 shares of Empire common stock and $3.75 million in cash. Creditors will receive a five-year earn-out based on Buddy L earnings, less certain obligations. Empire also will buy $1.1 million of accounts receivable and $14.9 million in inventory.
Buddy L filed for voluntary bankruptcy March 2 to reorganize and reduce liabilities. On May 19, the court approved Empire's bid to buy most of the toy maker's assets.
Buddy L was a subsidiary of toy and sportings goods producer SLM International Inc. of New York and shared the headquarters with SLM.
Empire reported sales of $19 million and a loss of $1 million for its first quarter, ended March 31.