Aug 13, 2008

Patch Products Inc. to acquire Smethport Specialty Co., Lauri product lines

BELOIT, Wis.—Patch Products today announced that it has entered into a definitive agreement to acquire the assets of Smethport Specialty Co., a leading manufacturer of toys and specialty line products.

The assets include product lines under the Lauri brand name, which is a division of Smethport Specialty Co. Smethport and Lauri will become an integral part of the growing specialty line being offered by Patch Products. Smethport Specialty Co., located in Smethport, Pa., has been in business since 1923, and its primary products include educational games and activity sets. One of its best known products is the Wooly Willy classic toy.

“Smethport Specialty Co. creates a strong strategic fit with Patch Products and will expand its manufacturing, sales and distribution operations for specialty products worldwide,” said Fran Patch, chairman and CEO of Patch. “By combining Smethport’s product development and specialty market expertise with Patch Products’ existing marketing and distribution capabilities, we expect to enhance our presence in the educational and toy industry.”

“Smethport’s products are highly complementary to our own existing game and puzzle product portfolio,” said Bryce Patch, president of Patch Products. “With Patch’s distribution network, we expect significant growth for the core product lines of each business, in addition to the new products that will be generated as a result of our collaborative efforts.”

Operations at the Smethport facility are planned to continue. “One aspect that makes this so advantageous is the continuity of operations,” said Scott Cavagnaro, president of Smethport Specialty Co. “Patch Products will achieve a seamless transition, and Smethport Specialty will gain access to additional resources while still maintaining its present operations.”

“This presents an excellent opportunity for Smethport Specialty to expand into markets and product lines that traditionally we have not pursued,” said Rob Daggett, chairman of Smethport Specialty Co. “Patch Products has marketing capabilities and resources that will benefit Smethport through increased exposure, and Smethport will lend its history and creative expertise in the specialty market to develop new products that will appeal to a wide range of consumers. This is just a great blend of products and resources for both companies.”

Patch Products, headquartered in Beloit, Wis., is a leading manufacturer and marketer of family entertainment products. Board games, card games, puzzles and collegiate-licensed foam sports toys are the core product lines. Top-selling games include Buzzword, What’s Yours Like? , Toss Up!, Swap! and the Jeff Foxworthy You Might Be a Redneck If… ™ Game. For more information, visit www.patchproducts.com.