LAKE BARRINGTON, Ill.,
Dec. 13, 2018 /PRNewswire/
-- CTI Industries Corporation (NASDAQ:
CTIB) ("CTI" or "the Company"), a manufacturer and
global marketer of novelty balloons, vacuum and flexible packaging
and storage products, printed and laminated films, party goods,
Candy Blossoms, and home container products, today announced its
intention to divest its operating and economic interest in Clever
Container LLC ("Clever"), a direct-to-consumer home organization
and container products company in which CTI has a 28.5% ownership
interest. This planned divestiture is expected to occur
during 2019.
"Over the last 18 months, CTI's management team has undertaken a
series of initiatives that have placed us on a path for improved
performance in 2018 and beyond," said Jeffrey S. Hyland, President and recently
appointed CEO of CTI. "As we drive towards sustainable growth and
operational excellence, we continue to examine all facets of CTI's
business model. Although Clever has grown its revenue base
over the last five years and sells quality and affordable products,
its hoped-for sales synergies with CTI were never fully realized
and it is not strategically significant to our current business and
growth plans. As such, we believe that it is the appropriate
time to divest, thus simplifying our corporate structure and
allowing us to focus our resources on CTI's core assets and areas
of expertise."
For the year ended December 31,
2017, Clever accounted for less than 10% of CTI's total
sales and generated a modest operating loss.
Clever has announced that as of December
16, 2018, it will cease its direct selling operations and
change its go-to market strategy by utilizing an online sales
platform. CTI has consolidated the results of Clever as a
Variable Interest Entity (VIE) since 2013 and intends to
reduce these elements with the goal of fully exiting its equity
investment by the end of 2019. This reduction will occur in
connection with Clever's new online sales platform, which CTI will
monitor to ensure maximum recovery on its investment and
receivables.
About CTI
CTI Industries Corporation is one of the leading manufacturers
and marketers of foil and latex balloons, develops, produces and
markets vacuum sealing systems for household use, and produces
laminated and printed films for commercial uses. CTI also
distributes products for home organization and storage, Candy
Blossoms and other gift items, and, in Mexico, party
goods. CTI markets its products throughout the United
States and in a number of other countries.
Forward Looking Statements
Statements made in this release that are not historical facts
are "forward-looking" statements (within the meaning of Section 21E
of the Securities Exchange Act of 1934) that involve risks and
uncertainties and are subject to change at any time. These
"forward-looking" statements may include, but are not limited to,
statements containing words such as "may," "should," "could,"
"would," "expect," "plan," "goal," "anticipate," "believe,"
"estimate," "predict," "potential," "continue," or similar
expressions. We have based these forward-looking statements on our
current expectations and projections about future results.
Although we believe that our opinions and expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements,
and our actual results may differ substantially from statements
made herein. More information on factors that could affect
CTI's business and financial results are included in its public
filings made with the Securities and Exchange Commission, including
its Annual Report on Form 10-K and Quarterly Reports on Form
10-Q.
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SOURCE CTI Industries Corporation
