The merger, estimated to be worth $20m, will create stronger purchasing power in the region.
In a deal covering the Lebanese market, Joué Club has merged with Early Learning Centre (ELC). Joué Club is a franchise owned by Magic Tree. The local agent for ELC is Transmed. The merger is estimated to be in the range of $20m.
Wael Sinno, managing partner of Magic Tree, commented: “Each entity will remain separate after the merger but both will be under the single management team of Magic Tree.”
Following the merger, both stores will have a 38% market share, and a 50% share of the premium and high end toys segment. Joué Club has eight stores, and ELC has five stores.
Wael said that the aim of the merger is to create synergy and stronger purchasing power.
He commented: “As suppliers, we would like to eliminate the middle man, and import and deliver directly to the customer. We will work to make toys more affordable and meet e-commerce challenges because the cost will now be amortized over 13 stores.”
Magic Tree plans to expand the number of both stores locally and in Jordan over the next five years.