33% of The Right Start to Be Sold in Offering
American Recreation Centers Inc. plans to spin off 33% of its The Right Start Inc. unit to the public through an initial public offering of 2 million common shares. The Right Start is a Westlake Village-based marketer of infant’s products.
American Recreation is a Sacramento-based concern that also operates 27 bowling centers in California and Texas. It would continue to own a controlling 67% of The Right Start after the offering.
The Right Start said the stock offering is expected to be priced between $5 and $7 a share, so that the gross proceeds from the sale could reach $14 million. The company said it would use the cash to finance its expansion and pay off a $2.7-million note held by American Recreation.
The Right Start markets health items, bath products, gifts and other items for infants and children up to age 4. The goods are sold through a mail-order catalogue that is sent to nearly 2.5 million homes four times a year, the company said.
The stock offering is being managed by Allen & Co.
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