"BHI is a leader in mass market home fragrance products, maintaining a strong relationship with Wal-Mart as the ‘category advisor’ for its candles and with a leading position in potpourri, as well as a solid relationship with other major food, drug and mass retailers across the country," said Robert B. Goergen, chairman of the board and CEO, Blyth. "A strong management team has made significant progress restructuring BHI in recent years, rationalizing product line sizes and reducing overhead expenses.
Blyth’s Memphis, Tennessee distribution facility and Bentonville, Arkansas operations are included in the sale. Blyth will retain all other offices, facilities, assets and employees associated with its wholesale candle manufacturing and distribution. The Company continues to manufacture and market Colonial Candles through its Midwest business.
"Our mass retailer candle business was the original base from which we built our leadership in home fragrance. Nevertheless, with our current and future focus on the direct-to-consumer and premium wholesale channels, as well as the Sterno business, BHI has become less of a strategic fit for Blyth going forward," said Goergen.
Management will update its full year, fiscal 2008 guidance to reflect the BHI divestiture in its first quarter earnings announcement, which is expected to be released on May 31, 2007.
Blyth did not disclose the sale price in its initial release.