Looking to broaden its offerings, Ohio-based Coloring Book Solutions (asi/45815) has purchased the assets of Coloring Book Advantages (asi/45789).
"We really feel we can take their assets and fold them into our template, which has been successful," said Don Myers, CEO of Coloring Book Solutions. "They have a lot of newly-created and fresh artwork, and a beautiful product line."
Per the deal, Coloring Book Solutions has acquired all of Coloring Book Advantages’ inventory, artwork and customer account information. "We had first approached them a couple of years ago, but they didn’t want to do a deal," Myers said. "The timing was good now and we started talking again over the last several months. They had struggled a bit and they were unfamiliar with our industry, but they really invested in their product line."
According to Myers, Coloring Book Solutions has increased its sales by 10% each of the last two years. "We think this acquisition will add 20% topline to our business in 2014," he said. "In year two following the deal, we’re looking at 30% and by year three 40% growth." Hoping to capitalize further on its position, Coloring Book Solutions also has plans to introduce 100 new items this year. "This will be a significant launch for us," Myers said.