RC2 Corp. to buy children's publishing division of Publications International

NEW YORK, Jun 23, 2008 (Thomson Financial via COMTEX) -- RCRC | Quote | Chart | News | PowerRating -- RC2 Corp. Monday said it agreed to buy the children's publishing division of privately-held Publications International Ltd. for $163 million in cash.

RC2 said it expects to achieve annual integration cost savings of $8 million to $10 million within two years of completing the acquisition. The asset purchase also allows for a tax basis set-up which will provide an estimated annual future tax benefit of $2.5 million to $3 million.

The deal is expected to add 15 cents to 20 cents a share to earnings in 2008 and 30 cents to 40 cents a share to earnings in 2009, the company said.

RC2 shares closed at $17.59 on Friday. Christie Rizk cr/pc

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