GREENWICH, Conn., Nov. 20, 2008 (GLOBE NEWSWIRE) -- Blyth, Inc. (NYSE:BTH), a leading multi-channel designer and marketer of home fragrance products, home decor products and household convenience items, today announced that its Board of Directors has approved a reverse stock split of the company's common stock. Management believes a reverse stock split may benefit stockholders because a higher price could make Blyth's common stock more attractive to a broader range of institutional and other investors. The reverse stock split is subject to stockholder approval.
If stockholders approve the split, Blyth's Board may select a reverse stock split ratio of either 1-for-3 or 1-for-4 so that, depending on the ratio chosen, either three or four shares of issued and outstanding common stock would be converted into one share of common stock. The price of each common share would increase by the same ratio so that a stockholder would have fewer but higher priced shares, keeping the total investment the same when the market opens on the date a split becomes effective. A reverse stock split would not have any impact on the voting and other rights of stockholders. Management confirmed that a reverse stock split would have no impact on its business operations or any of its credit facilities.
The Board of Directors has also approved a reduction in the Company's number of authorized shares from 110 million shares to 60 million shares, 50 million of which will be common shares and 10 million of which will be preferred shares. The reduction in the number of authorized shares is also subject to shareholder approval, and is conditioned upon stockholder approval of the reverse stock split.
The Company plans to hold a special meeting of stockholders and would complete the reverse stock split and reduction in the number of authorized shares at the end of January 2009, the end of the Company's fiscal year, subject to market conditions. The time, date and other details regarding the special meeting will be communicated to stockholders at a later date via proxy material that will be filed with, and subject to review by, the Securities and Exchange Commission. Blyth's Board of Directors has set December 3, 2008 as the record date for stockholders entitled to receive a proxy statement and vote at the special meeting.
Stockholders who hold their shares in brokerage accounts or "street name" will not be required to take any action to effect the exchange of their shares. Stockholders of record who hold share certificates will receive a letter of transmittal requesting that they surrender their old stock certificates for new stock certificates reflecting the adjusted number of shares as a result of the reverse stock split. ComputerShare, Blyth's transfer agent, will act as the exchange agent for purposes of implementing the exchange of stock certificates. Stockholders should not destroy any stock certificates and should not submit any stock certificates for exchange unless and until instructed to do so. No fractional shares will be issued in connection with the reverse stock split. Stockholders who would be entitled to fractional shares will receive cash in lieu thereof.
While the Company plans to affect the reverse stock split at the end of January 2009, subject to market and other customary conditions, there can be no assurances that the reverse stock split will be consummated or that it will achieve its intended effect of resulting in an increased per share price of Blyth common stock or its other intended effects. The Company reserves the right, in its discretion, to abandon the reverse stock split at any time, even if and after the reverse stock split has been approved by the stockholders.
The Company encourages stockholders to read the proxy statement relating to the special meeting when it becomes available because it will contain important information. Stockholders may obtain a free copy of the proxy statement and other documents (when filed) that the Company files with the SEC at the SEC's website at www.sec.gov or by contacting Tyler P. Schuessler, Vice President, Investor Relations, at (203) 661-1926.
Blyth, Inc., headquartered in Greenwich, CT, USA, is a Home Expressions company that markets an extensive array of home fragrance products, decorative accessories, seasonal decorations and household convenience items. The Company sells its products through multiple channels of distribution, including the home party plan method of direct selling, as well as through the catalog/Internet and wholesale channels. Blyth also markets tabletop lighting and chafing fuel for the Away From Home or foodservice trade. The Company manufactures most of its candles and chafing fuel and sources nearly all of its other products. Its products are sold direct to the consumer under the PartyLite(r) and Two Sisters Gourmet(r) brands, to consumers in the catalog and Internet channel under the Miles Kimball(r), Exposures(r), Walter Drake(r), The Home Marketplace(r), Easy Comforts(r), As We Change(r) and Boca Java(r) brands, to retailers in the premium and specialty retail channels under the Colonial Candle(r), CBK(r) and Seasons of Cannon Falls(r) brands, to retailers in the mass retail channel under the Sterno(r) brand, and to the Foodservice industry under the Sterno(r), Ambria(r) and HandyFuel(r) brands. In Europe, Blyth's products are also sold under the PartyLite(r) brand.
Blyth, Inc. may be found on the Internet at www.blyth.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical facts. Actual results could differ materially due to various factors, including the slowing of the United States or European economies or retail environments, the risk that we will be unable to maintain our historic growth rate, our ability to respond appropriately to changes in product demand, the risk that we will be unable to integrate the businesses that we acquire into our existing operations, the risks (including foreign currency fluctuations, economic and political instability, transportation delays, difficulty in maintaining quality control, trade and foreign tax laws and others) associated with international sales and foreign sourced products, risks associated with our ability to recruit new independent sales consultants, our dependence on key corporate management personnel, risks associated with the sourcing of raw materials for our products, competition in terms of price and new product introductions, risks associated with our information technology systems (including, susceptibility to outages due to fire, floods, power loss, telecommunications failures, computer viruses, break-ins and similar events), risks associated with other factors described in this press release and in the Company's Annual Report on Form 10-K for the year ended January 31, 2008.