• Q3 net earnings climbed 66% to $2.6m
  • Net sales grew 4.6% to $26.13m from $25.80m
  • Mill Road Capital to acquire all shares in $215m deal

Private equity firm Mill Road Capital is to acquire all of the outstanding shares of slipper and accessories marker RG Barry Corporation that it doesn't already own, in a deal worth around $215m.

The merger will result in RG Barry becoming a wholly-owned subsidiary of a newly-formed corporation controlled by Mill Road.

Details of the deal came as the company, which makes Dearfoams slippers, said third-quarter net earnings climbed 66% to $2.6m from $1.5m a year earlier, including a $2.4m gain related to the death benefit of insurance policies on the life of former chairman, Gordon Zacks, who died in February.

Net sales grew 4.6% to $26.13m from $25.80m a year ago. Gross profit edged up to 44.1% of net sales compared to 45.9% one year ago.

Greg Tunney, RG Barry president and CEO, commented: "The greatest test our business faces continues to be identifying and retaining profitable top-line growth in existing segments while adding new, category-appropriate drivers in other parts of the accessories universe.

"We remain committed to investing for the long-term in the people, platforms and strategies that will make that growth possible at a faster and more sustainable rate than we currently are achieving."