Over the past few years, mergers and acquisitions have fueled growth for many toymakers as the business of play continues to evolve. Could Jazwares and Jakks Pacific be the next duo to combine forces?
According to the Los Angeles Times, Alleghany Capital Corp., Jazwares’ parent company, put in a takeover offer for Jakks Pacific. The initial offer seeks to buy the maker of Who’s Your Llama?, Real Workin’ Buddies, and a host of licensed product ranging from Harry Potter to Mega Man for 85 cents a share. The offer values the company at about $27.7 million.
In its second quarter earnings report, Jakks Pacific noted bumps in the road, with sales and margin declining as losses gained. Jakks Pacific CEO Stephen Berman stated that the company was looking toward the second half of the year for a rebound led by substantial increases in its Disguise costumes division and a variety of new licensed product set to pop, including items tied to Frozen 2.
An acquisition by Alleghany, which first took stake in Jazwares back in 2014, could result in a merger of sorts — or the two companies could remain completely separate, though that would seem unlikely. In recent years, Jazwares has acquired First Act, ZAG Toys, Russ Berrie, and Applause Brands.