- Wednesday, October 16, 2024
Shares of Spin Master, a Canadian children's entertainment company, surged in early trading following the announcement of its acquisition of U.S.-based toy maker Melissa & Doug. The cash deal, valued at $950 million, will allow Spin Master to expand its portfolio and strengthen its presence in the early childhood toys market.
As of 9:39 a.m. ET, shares of Spin Master were trading 8.3% higher at 36.51 Canadian dollars ($26.88). While the stock has seen a 9.7% increase so far in 2023, it is still down 14% over the past year.
Spin Master emphasized the complementary capabilities that Melissa & Doug brings to the table, particularly in the realm of open-ended, creative, and developmental wooden toys for young children. This acquisition represents Spin Master's 14th since its inception in 1994, and its second so far this year. In January, the company acquired Hexbug, a renowned brand of infrared and automaton toys.
CEO Max Rangel highlighted the significance of Melissa & Doug's reputation and extensive range of evergreen early-childhood toys in the decision to pursue this acquisition. With the integration of Melissa & Doug into its brand portfolio, Spin Master expects immediate revenue growth and a wider reach across all retail channels.
After the acquisition, Melissa & Doug will join Spin Master's roster of iconic brands, including Paw Patrol, Bakugan, Hatchimals, Rubik's Cube, and Tech Deck.
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