Spin Master says the acquisition of Melissa & Doug is highly strategic and will expand the company’s offering in early childhood play.
Spin Master has announced it has reached a definitive agreement to acquire US-based Melissa & Doug for $950m in cash. The company said the acquisition will bolster Spin Master’s position as a leader in the children’s entertainment industry and will bring complementary capabilities in early childhood toys by adding Melissa & Doug’s high-quality offerings of open-ended, creative, and developmental wooden toys.
“What excites us so much about Melissa & Doug is the power of the brand, the team’s deep knowledge in developmental play and its passion for creativity, imagination and sustainability,” said Max Rangel, Spin Master’s global president and CEO. “As a trusted brand of early childhood toys with an evergreen portfolio, Melissa & Doug will expand Spin Master’s presence in new categories, providing immediate revenue growth, broader reach in all retail channels and market coverage.”
“Throughout our 35-year history, Melissa & Doug has helped ignite children’s imaginations by fostering open-ended, sustainable play,” commented Melissa & Doug president and CEO, Fernando Mercé. “We are confident that by working together with Spin Master, we will be able to reach more families, inspire more imaginations and unlock greater growth potential.”
Anton Rabie, Spin Master’s co-founder, said: “We have an incredible history of pursuing accretive acquisitions to propel our growth as a company and have become trusted stewards of many renowned and beloved children’s brands,” while Ronnen Harary, Spin Master’s co-founder added: “With this acquisition, we are committed to preserving the essence of what Melissa & Doug represents for families and are confident that our investment will enable us to accelerate growth and build upon our legacy as a leader in the children’s entertainment industry now and into the future.”
Spin Master, which reported encouraging Q123 results in May this year, plans to finance the $950m purchase price with approximately $450m balance sheet cash and $500m in debt financing. The acquisition is expected to close early in the first quarter of 2024 and Toy World understands that both Spin Master and Melissa & Doug will continue to operate individually for the remainder of this year.
