Spin Master Completes Acquisition of Melissa & Doug, A Trusted Brand in Early Childhood Play

The highly strategic and complementary acquisition will bolster Spin Master’s position in the children’s entertainment industry

Spin Master Corp., a leading global children’s entertainment company, announced it has completed its previously announced acquisition of U.S.-based Melissa & Doug, a well-recognized and trusted brand in early childhood play, for $950 million.

With a mission to ignite imagination and a sense of wonder in children, Melissa & Doug is a beloved brand that is sought after and trusted by parents and children alike and highly relevant for families seeking sustainable wooden toys and screen-free play.

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“This acquisition brings together two formidable leaders in the toy industry, both driven by a passion to create magical play experiences for children and inspire imaginations on a global scale,” said Max Rangel, Spin Master’s Global President and CEO. “By adding Melissa & Doug’s complementary product line to our existing toy portfolio we expand our capabilities in early childhood play and further bolster Spin Master’s leadership in the children’s entertainment industry. Our combined expertise, and the addition of Melissa & Doug’s high-quality, open-ended, creative and developmental toys, positions both Spin Master and Melissa & Doug to unlock further growth across new and existing channels and in markets globally.”

The transaction expands Spin Master’s reach in specialty retail and e-commerce channels, and provides a recurring, evergreen product portfolio with a diverse revenue base and significant long-term growth opportunities. As part of the closing of the transaction, the parties have agreed to eliminate the additional contingent earnout consideration of up to $150 million, previously announced on October 11^th.

Advisors
Evercore, TD Securities and RBC Capital Markets served as financial advisors to Spin Master. HSBC Bank, TD Bank and Royal Bank of Canada as Joint Lead Arrangers provided debt financing specific to funding the Acquisition, supplemental to the company’s Credit Facility. Torkin Manes LLP and Pillsbury Winthrop Shaw Pittman LLP served as legal counsel. Harris Williams & Co acted as financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel to Melissa & Doug.

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