RC2 to buy Publications' childrens publishing unit
NEW YORK, June 23 (Reuters) - U.S. toy company RC2 Corp (RCRC.O) said on Monday that it has signed an agreement to buy the Children's Publishing Division of privately held Publications International Ltd for $163 million in cash.
RC2 said it expects annual integration cost savings from $8 million to $10 million within two years of completing the purchase.
The company said it expects the deal to be accretive to earnings, with initial estimated incremental earnings per share increases of 15 to 20 cents in 2008 and 30 to 40 cents in 2009. But RC2 warned that individual quarters' earnings could be diluted, given the timing of the deal and cost savings and the seasonal nature of sales. (Reporting by Aarthi Sivaraman, editing by Gerald E. McCormick)
