May 8, 2001
Tiffany Buys 45% Stake in Little Switzerland
Little Switzerland Inc. closed its sale of a 45% equity interest to Tiffany & Co. International Inc. Tiffany invested approximately $9.3 million to purchase 7.41 million newly issued shares of Little Switzerland common stock and provided a line of credit up to $2.5 million.
"We view Tiffany & Co. as one of the world's premier retailers and believe its investment will permit Little Switzerland to complete successfully its return to profitability and enhance the prospects for long-term increases in stockholder value," says Seymour Holtzman, chairman of the board of Little Switzerland.
Some of the proceeds from the sale were used to pay off $5 million of Little Switzerland's bank debt. The company refinanced its remaining debt and secured a one-year secured revolving line of credit from Chase Manhattan Bank.
- by Julia M. Duncan