Blyth Cuts Jobs, Closes Facilities, Buys Walter Drake

Candlemaker Blyth Inc. said it would cut jobs and close facilities in a restructuring aimed at reducing costs and scaling back some product lines. The Greenwich, CT-based company said it would record fourth quarter restructuring charges and asset writedowns totaling between $25 million and $27 million. As a result, fourth quarter earnings will be reduced.

In other news, Blyth Inc. acquired Walter Drake, a leading direct marketer of value-priced household products, for $53 million. The company’s products are marketed under two main catalog titles and internet web sites, Walter Drake (www.wdrake.com) which sells household gifts, gadgets and convenience products, personalized merchandise, home decor and holiday cards, and The Home Marketplace (www.thehomemarketplace.com), a retailer of kitchen and storage products, as well as general household maintenance items. The Walter Drake Company’s annualized net sales total approximately $80 million.

This follows the acquisition of catalog/internet company Miles Kimball in April 2003. The combined businesses will be led by Miles Kimball Company president, Mike Muoio. Blyth vice president Robert B. Goergen Jr. said, “Walter Drake’s less seasonal sales pattern complements the highly seasonal business of Miles Kimball, and combining their operations offers significant leverage as we continue to build this new distribution platform for Blyth.