Spin Master today acquired Swimways Co. and formed an outdoor business segment. The acquisition makes Spin Master a player in the outdoor and sports toy category—currently one of the largest and fastest rowing categories in the U.S. toy industry, according to the NPD Group. Swimways will operate as a stand-alone subsidiary within the Spin Master group.Â
The purchase price for the transaction will be satisfied by $85 million in cash on closing, plus up to $8.5 million payable over four years based on Swimways’ sales growth. The transaction was financed through Spin Master’s existing credit facility.
The announcement marks Spin Master’s fifth acquisition since its Initial Public Offering in July 2015. Spin Master completed the purchase of Cardinal Industries in Q4 last year; acquired the Etch a Sketch and Doodle Sketch brands from The Ohio Art Company in Q1 this year; and acquired global mobile digital app companies Toca Boca and Sago Mini in Q2 this year.
