Comprehensive M&A data with integrated detailed company information

Jazwares’ owner tables bid for Jakks: Bloomberg
Posted on Friday, 06 September 2019 10:21
Alleghany has made a play to take Jakks Pacific private, Bloomberg reported, at a time when the struggling, loss-making US toy manufacturer has lost 69.6 per cent of its market value in the trailing 12 months to date.

Sources with knowledge of the situation told the news provider the owner of Jazwares tabled an offer earlier this week of USD 0.85 apiece for the Californian owner of licences to make consumer products for the likes of Marvel.

They noted no decision has been reached and the deal may not even go ahead, though this caution did not stop investors pushing up shares in Jakks to an intra-day high of USD 0.95.

However, gains were pared to USD 0.76 by the time the bell rang to value the manufacturer of action figures, play sets and dolls at USD 26.45 million.

Spokespeople for the company and New York-based Alleghany declined to comment when contacted by Bloomberg for a statement.

The article comes almost a month to the day since Jakks completed a recapitalisation featuring Wells Fargo Bank, Oasis Investments and an ad hoc group of holders of convertible senior notes due 2020.

At the time of the announcement, the company also said it was no longer in discussions with Meisheng regarding an issue of new shares equating a post-deal stake of 51.0 per cent.

Toy manufacturers are consolidating and attempting to diversify their businesses following the fallout of the collapse of Toys “R” Us last year.

Zephyr, the M&A database published by Bureau van Dijk, shows the aggregate value of deals announced by companies operating in the sector acting as acquirors in 2019 to date currently totals USD 4.34 billion (2018: USD 1.01 billion).

The largest by value is the pending USD 4.00 billion takeover of Entertainment One of Canada by Hasbro, the biggest listed player in the industry.

© Zephus Ltd