Spin Master buying Melissa & Doug for US$950 million
Global News
Spin Master Corp. has signed a deal to buy U.S.-based toy company Melissa & Doug for US$950 million in cash.
TORONTO — Spin Master Corp. has signed a deal to buy U.S.-based toy company Melissa & Doug for US$950 million in cash.
Spin Master chief executive Max Rangel says Melissa & Doug is a trusted brand of early childhood toys with an evergreen portfolio.
Rangel says the addition of Melissa & Doug will expand Spin Master’s presence in new categories, providing immediate revenue growth.
Spin Master is best known for its Paw Patrol, Bakugan, Hatchimals, Rubik’s Cube and Gund brands.
It says it plans to finance the purchase price with about $450 million in balance sheet cash and $500 million in debt financing.
The agreement also includes up to an additional US$150 million that is subject to achieving certain financial targets for 2024 and 2025.