Superior Uniform Acquires Healthcare Apparel Company
TRSA associate member Superior Uniform Group Inc., Seminole, FL, recently announced that it has entered into a definitive agreement to acquire all of the outstanding stock of CID Resources Inc., a privately owned company based in Coppell, TX, for approximately $88.4 million.
CID is a provider of branded medical uniforms, primarily selling to healthcare customers under the WonderWink® brand name. WonderWink® and its sub-brands, WonderWink Origins, WonderWink Layers, WonderWink Four-Stretch®, WonderFLEX™, WonderWORK®, WonderWink HP®, WonderWink NEXT®, WonderTECH® and W123™, represent a diverse and innovative retail offering. CID also has licensed and built well-known workwear and outdoor brand, Carhartt®, and lifestyle brand, Vera Bradley®, into successful scrub brands, the release noted.
By leveraging CID’s brands, licenses and established network of retailers, Superior Uniform Group expects to greatly expand its line of uniforms for healthcare support personnel with more retail-focused uniform options and local, consumer-friendly service.
The purchase price of approximately $88.4 million for the transaction consists of approximately $84.4 million in cash, net of cash acquired, subject to adjustments, and the issuance of approximately 150,000 shares of Superior Uniform common stock. The transaction closed on May 2, and was structured as a stock purchase. CID’s net sales for the year ended Dec. 31, 2017, were $65.3 million. The transaction is expected to be accretive to Superior’s earnings per share and other operating results in 2018.
“We have always considered acquisitions as a vehicle to accelerate our growth and add to our bottom line,” said Michael Benstock, CEO of Superior. “Our acquisition of HPI years ago was a great example of our success at doing so in the uniform space. We believe that CID will be no exception, as it will enhance our current sales opportunities with our other uniform customers.”
CID will manage the Direct Healthcare channel for Superior and will continue to sell through the retail channels that are already established and have contributed to CID’s success. Benstock continued, “CID will be a wholly-owned subsidiary of Superior and will continue to operate from its Coppell, TX, headquarters. We are thrilled that CID’s very capable and experienced management team will be joining our team and will drive this portion of our healthcare business in the years ahead.”
H.P. Park, president of CID, said that, “We have spent the past eight years building our business and our brands. This acquisition will allow us to take CID to the next level as we leverage Superior’s relationships, sourcing, technology, distribution and financial resources.”
Superior Uniform Group posted an investor presentation containing additional information on the acquisition on its website at www.superioruniformgroup.com under “Investor Information – Presentations.”