Baby's Room Sells Majority Interest to Illinois Investor

Alan Levine, founder and president of The Baby's Room, Inc. and USA Baby, Inc., sold a majority interest in the The Baby's Room, Inc. to Craig and Laurie Nelson of Elmhurst, Ill., it was announced today. The acquisition brings the number of franchised stores in the chain to 48 from 40, a 20% icrease.

Founded in 1975, The Baby's Room has grown into a multi million dollar business with eight stores in the Chicagoland area. The Baby's Room was the foundation for what is now USA Baby, the nation's leading specialty retailer of infant and children's furniture and accessories.

Also included in the acquisition is Child Space, USA Baby's relatively new youth furniture gallery program to provide baby product customers with needed furniture and accessories as their children grow older.

The Baby's Rooms central office, warehouse and staff will remain at its present location at 857 N. Larch Ave. in Elmhurst, Ill., sharing space with the headquarters for USA Baby.

Craig Nelson has a long background at Jiffy Lube, America's leading oil change Franchise operation. He has owned and operated numerous Jiffy Lube Franchises over the past 17 years, and has served on their franchise association board of directors for eight years, including two terms as president. Craig also worked for Jiffy Lube International, Inc. as Midwest Real Estate and Construction Manager.

Laurie Nelson has an extensive background as the Controller and financial analyst for their Jiffy Lube franchises. She also was a Senior franchise Accountant for White Hen Pantry Corporation, a prominent Chicagoland franchisor. Through her financial skill, she has been able to effectively manage and increase the corporate cash flow for the companies she has been employed by.

The Baby's Room will now become the largest franchise of USA Baby, its franchisor, and will own the entire Illinois territory for future growth as USA Baby franchises.

Alan Levine will continue to remain an integral part of The Baby's Room, both as a partner and a mentor to the Nelsons.

The transaction is being financed by the Mercantile Bank of Illinois, which will provide a blend of a long-term loan and line of credit financing and further build its long-standing relationship with USA Baby.

The eight Chicagoland store locations are in Arlington Heights, Aurora, Chicago (N. Lincoln Ave.), Crystal Lake, Hoffman Estates, Lombard, Mundelein and Orland Park.

Established in 1975, The Baby's Room/USA Baby is America's leading specialty retailer of infant and children's furniture and accessories with 50 stores located in 13 states and in Mexico.