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Lifetime Brands inks Brazil partnership

Jeffrey Siegel, chief executive of Garden-City based Lifetime

Jeffrey Siegel, chief executive of Garden-City based Lifetime Brands Inc. Compensation, as reported $3,132,413. Photo Credit: Danny Ghitis, 2010

Garden City-based Lifetime Brands Inc. has bought a 40 percent stake in a large Brazilian distributor of branded housewares, GS Internacional S/A.

It's the second recent purchase for Lifetime Brands, which holds a stable of companies that already includes Farberware, KitchenAid and Cuisinart.

Shares of Lifetime Brands were unchanged in early trading Monday; its closing price Friday of $11.75 represents a 12.5 percent decline in the past 52 weeks. With more than 1,000 employees, the company had $20.1 million profit on $449.4 million revenue in the past four quarters.

Lifetime's new partner, GS Internacional, based near the Brazilian shipping port city of Vitoria, markets dinnerware, glassware, home decor, kitchenware and barware to more than 7,000 customers, including major department stores, housewares retailers and independent shops throughout Brazil," Lifetime Brands said in a Monday news statement. GS Internacional also maintains a showroom and offices in Sao Paulo.

Last month, LIfetime Brands bought a British kitchenware maker, Creative Tops Ltd., a maker of private label and branded housewares.

“This investment represents another step in executing our strategy to accelerate our growth and to strengthen our business by investing in successful companies in partnership with strong local management teams," Lifetime chief executive Jeffrey Siegel said.

The deal will help the company sell more of its brand-name products in the economic region known in Spanish as Mercosur, and in Portuguese as Mercosul. The region encompasses Argentina, Brazil, Paraguay and Uruguay along South America's Atlantic coast.

The investment will have no material impact on Lifetime’s diluted earnings per share in 2011, but will add to earnings next year, Lifetime said.

The terms of the acquisition were not disclosed.

Lifetime Brands also owns a 30 percent equity interest in Grupo Vasconia, S.A.B. in Mexico; and a profit sharing interest in a strategic alliance in Canada.

Photo: Lifetime Brands chief executive Jeffrey Siegel.

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