Thursday, March 8, 2018

Spin Master Announces Acquisition of GUND

Toy Fair 2018 Gund Pusheen Plush
Spin Master Corp. (TSX:TOY;, a leading global children's entertainment company, is pleased to announce the purchase of GUND, the oldest soft toy brand in the United States, from Enesco LLC, a portfolio company of Balmoral Funds, a private equity firm.

Established in 1898, GUND is one of the leading plush toy manufacturers in the world, recognized by the American Brand Council as one of the most trusted toy brands in the U.S. Universally known and loved for its iconic "Gotta Getta GUND" campaign, the brand connects effortlessly with multiple generations of people who have shared special moments of their lives with this affordable luxury.

"GUND's iconic portfolio of toys has won the hearts – and hugs – of children around the world for more than a century," said Anton Rabie, Spin Master Co-Chief Executive Officer and Co-Founder. "We are thrilled to welcome GUND former owner and industry veteran, Bruce Raiffe, into the Spin Master family as our values closely align. We are focused on preserving GUND's excellent reputation rooted in quality product and cherished memories that last a lifetime."

According to a recent NPD report, the plush toy category grew 6% worldwide in 2017. With the acquisition of GUND, Spin Master will now have a solid platform from which to expand into the infant toy and specialty gift categories.

Spin Master Global President and COO Ben Gadbois feels the new acquisition closely aligns with Spin Master's key growth strategies. "GUND further diversifies our product line and opens up significant opportunities for broader distribution. We will also be able to drive international growth leveraging our well-established global infrastructure," he said. "GUND introduces Spin Master into the gift business as plush offers a tried-and-true play value for kids to enjoy with their parents during everyday moments."

Toy Fair 2018 Gund Boo PlushToy Fair 2018 Gund Studio Ghibli

Enesco CEO Todd Mavis is pleased that the iconic GUND brand will be in good hands, with the resources to maximize its global consumer appeal. "We've really enjoyed working with the entire GUND team and wish them continued success in their new partnership with Spin Master," said Mavis.

The acquisition of GUND marks Spin Master's 20th acquisition since the company was founded, and the ninth since its initial public offering in 2015. The purchase consideration is US$79.1M, which will be settled utilizing Spin Master's internally generated cash resources and its credit facility. The acquisition of GUND is expected to close on April 1, 2018.

Check out our GUND image galleries from UK Spring Fair
and NY International Toy Fair!

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