<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------
AMENDMENT NO. 1
to
SCHEDULE 14D-1
Tender Offer Statement Pursuant to Section 14(d)(1)
of the Securities Exchange Act of 1934
and
SCHEDULE 13D
under the Securities Exchange Act of 1934
------------
ERO, INC.
(Name of Subject Company)
------------
HC ACQUISITION CORP.
HEDSTROM CORPORATION
(Bidders)
------------
Common Stock, $.01 par value
(Title of Class of Securities)
------------
268911104 (Common Stock)
(CUSIP number of Class of Securities)
------------
Alan B. Menkes
Hicks, Muse, Tate & Furst Incorporated
1325 Avenue of the Americas, 25th Floor
New York, New York 10019
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications on Behalf of the Bidders)
------------
Copy to:
Simeon Gold, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153
------------
April 10, 1997
(Date of Event which Required Filing of Statement on Schedule 13D)
CALCULATION OF FILING FEE
===============================================================================
TRANSACTION VALUATION* AMOUNT OF FILING FEE
- -------------------------------------------------------------------------------
$122,600,000 $24,520
===============================================================================
* Estimated for purposes of calculating the amount of the filing fee only.
The amount assumes the purchase of 10,274,300 shares of common stock, $.01
par value per share (the "Shares"), at a per Share purchase price of $11.25
and the cancellation of and settlement with respect to options to purchase
1,458,000 Shares. Such numbers of Shares and options represent all of the
Shares and options outstanding as of April 10, 1997.
[X] Check box if any part of the fee is offset as provided by Rule 0-11(a)(2)
and identify the filing with which the offsetting fee was previously paid.
Identify the previous filing by registration statement number, or the form
or schedule and the date of its filing.
<TABLE>
<S> <C> <C> <C>
Amount Previously Paid: $24,520 Filing Party: HC Acquisition Corp.
Form or Registration No.: Schedule 14D-1 and and Hedstrom Corporation
Schedule 13D Date Filed: April 17, 1997
</TABLE>
Page 1 of 7 Pages
Exhibit Index is located on Page 6
<PAGE> 2
CUSIP NO. 268911104 14D-1 Page 2 of 7 Pages
<TABLE>
- --------------------------------------------------------------------------------
<S> <C> <C>
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
HC Acquisition Corp.
- --------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
2 (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
SEC USE ONLY
3
- --------------------------------------------------------------------------------
SOURCE OF FUNDS
4 BK, AF
- --------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS
5 IS REQUIRED PURSUANT TO ITEM 2(e) or 2(f). [ ]
- --------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6 State of Delaware
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
7 REPORTING PERSON 3,940,000*
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7)
8 EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
38.3%
- --------------------------------------------------------------------------------
TYPE OF REPORTING PERSON
10 CO
- --------------------------------------------------------------------------------
</TABLE>
* On April 10, 1997, Hedstrom Corporation, a Delaware
corporation ("Parent"), and HC Acquisition Corp., a Delaware
corporation and a wholly owned subsidiary of Parent
("Purchaser"), entered into a Stockholders Agreement (the
"Stockholders Agreement") with ERO, Inc., a Delaware
corporation (the "Company"), and Golder, Thoma, Cressey Fund
III Limited Partnership (the "Selling Stockholder"), pursuant
to which the Selling Stockholder agreed to validly tender and
not withdraw an aggregate of 3,940,000 shares of the Company's
common stock, $.01 par value per share (the "Shares") pursuant
to Purchaser's offer to purchase all outstanding Shares at a
purchase price per Share of $11.25, net to the seller in cash.
The Stockholders Agreement is more fully described in Section
12 of the Offer to Purchase dated April 17, 1997.
2
<PAGE> 3
CUSIP NO. 268911104 14D-1 Page 3 of 7 Pages
<TABLE>
- --------------------------------------------------------------------------------
<S> <C> <C>
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Hedstrom Corporation
- --------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
2 (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
SEC USE ONLY
3
- --------------------------------------------------------------------------------
SOURCE OF FUNDS
4 BK, AF, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(e) or 2(f). [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
State of Delaware
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
7 PERSON 3,940,000*
- --------------------------------------------------------------------------------
8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7)
EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7)
38.3%
- --------------------------------------------------------------------------------
TYPE OF REPORTING PERSON
10 CO
- --------------------------------------------------------------------------------
</TABLE>
* On April 10, 1997, Hedstrom Corporation, a Delaware
corporation ("Parent"), and HC Acquisition Corp., a Delaware
corporation and a wholly owned subsidiary of Parent
("Purchaser"), entered into a Stockholders Agreement (the
"Stockholders Agreement") with ERO, Inc., a Delaware
corporation (the "Company"), and Golder, Thoma, Cressey Fund
III Limited Partnership (the "Selling Stockholder"), pursuant
to which the Selling Stockholder agreed to validly tender and
not withdraw an aggregate of 3,940,000 shares of the Company's
common stock, $.01 par value per share (the "Shares") pursuant
to Purchaser's offer to purchase all outstanding Shares at a
purchase price per Share of $11.25, net to the seller in cash.
The Stockholders Agreement is more fully described in Section
12 of the Offer to Purchase dated April 17, 1997.
3
<PAGE> 4
TENDER OFFER
This Amendment No. 1 amends and supplements the Tender Offer Statement
on Schedule 14D-1 and Statement on Schedule 13D (the "Statement") filed on
April 17, 1997 by HC Acquisition Corp., a Delaware corporation ("Purchaser"),
and Hedstrom Corporation, a Delaware corporation ("Parent"), relating to the
offer by Purchaser to purchase all outstanding shares of common stock, $.01 par
value per share (the "Shares"), of ERO, Inc., a Delaware corporation (the
"Company"), at $11.25 per Share, net to the seller in cash, on the terms and
subject to the conditions set forth in the Offer to Purchase, dated April 17,
1997 (the "Offer to Purchase"), and in the related Letter of Transmittal,
copies of which are attached to the Statement as Exhibits (a)(1) and (a)(2),
respectively (which collectively constitute the "Offer").
ITEM 10. ADDITIONAL INFORMATION.
The response to Item 10 of the Statement is supplemented as follows:
On June 2, 1997, Parent and Purchaser jointly issued a press release,
the text of which is attached hereto as Exhibit (a)(9) and incorporated herein
by reference.
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
99(a)(9) Text of Press Release dated June 2, 1997.
4
<PAGE> 5
SIGNATURES
After due inquiry and to the best of my knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: June 3, 1997
HC ACQUISITION CORP.
By: /s/ Andrew S. Rosen
-------------------------------
Title: Vice President
HEDSTROM CORPORATION
By: /s/ Andrew S. Rosen
-------------------------------
Title: Vice President
5
<PAGE> 6
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Description
- ------- -----------
<S> <C>
99(a)(9) Text of Press Release dated June 2, 1997.
</TABLE>
<PAGE> 1
Contact: Roy Winnick
Kekst and Company
(212) 521-4842
HEDSTROM CORPORATION AND HC ACQUISITION CORP.
EXTEND CASH TENDER OFFER FOR SHARES OF ERO, INC.
UNTIL 12:00 MIDNIGHT, NEW YORK CITY TIME,
ON WEDNESDAY, JUNE 11, 1997
CORAOPOLIS, PENNSYLVANIA, JUNE 2, 1997 -- Hedstrom Corporation and its wholly
owned subsidiary HC Acquisition Corp., both of Coraopolis, announced today that
HC Acquisition has extended until 12:00 midnight, New York City time, on
Wednesday, June 11, 1997 its tender offer for all of the issued and outstanding
shares of common stock of ERO, Inc. (NASDAQ:EROI) of Mount Prospect, Illinois
at a price of $11.25 per share, net to the seller in cash. The tender offer
was previously scheduled to expire at 12:00 midnight, New York City time, on
Monday, June 2, 1997. The terms of the extended tender offer are identical to
those in the original tender offer contained in the tender offer materials
filed with the Securities and Exchange Commission on April 17, 1997.
HC Acquisition has been advised by the depositary for the tender offer that as
of 5:00 P.M., New York City time, on June 2, 1997, 10,111,047 shares of ERO's
common stock (approximately 92.8% of the issued and outstanding shares) had
been validly tendered and not withdrawn.
