Buyout firm Centerbridge Partners is backing Just Play’s offer, and discussions are ongoing.
Jakks Pacific could be sold to Just Play in a bid backed by private equity firm Centerbridge Partners, according to reports. Just Play is said to be in exclusive talks to buy Jakks, in a deal worth 80 to 90 cents per share, according to sources who asked not to be identified. It is assumed that the value of the offer is still in flux.
If the talks do not fall through, a deal could be announced by the end of the month.
Jakks Pacific has been exploring a sale for several months, amid steep losses and a sinking share price. The company took a big hit last year due to the liquidation of Toys R Us in many parts of the world, including the US, where Jakks Pacific generates more than 80% of its revenue.
Jazwares owner Alleghany Corp. made an offer to buy the company in September. The deal did not come to fruition, instead Alleghany announced the acquisition last week of Wicked Cool Toys.
One hurdle to a sale of Jakks Pacific has been the cost of transferring its licences for Disney brands such as Frozen and Marvel, according to some sources. Just Play, however, is already a Disney partner. The company is also familiar with Jakks Pacific, as co-founder Geoffrey Greenberg sold a previous business to the company.
There has been no comment from Just Play, Jakks Pacific or Centerbridge on the matter.