THE CRITICAL ROLE OF ACQUISITIONS IN TOY COMPANY GROWTH
Mattel purchased Mega Bloks for approximately $460m USD back in 2014. Hasbro acquired Power Rangers for $522million USD in 2018 and E1 (including Peppa Pig) for around $4billion USD in 2019. But it isn’t just recently that these long-established behemoths of the toy business have been on the acquisition trail, the history of both companies is littered with acquisitions.
Looking at other companies – MGA Entertainment acquired Little Tikes back in 2006 and of course Spin Master have made numerous purchases over the last decade or so with Rubiks being among the most notable of those.
Here’s why acquisition is always a big part of growth strategies for toy companies – it takes years, if not decades to build strong toy brands. Once a toy company gets to the size where they can access more advanced financing options, it often makes more sense to buy another brand or company than it does to proceed with a risky new launch in a category not previously entered.
For those building companies and brands with a desire to eventually sell up and cash out, there are many companies out there looking to buy ready made opportunities. If you’ve only recently started, you would need something quite special to get a quick sale most probably, but anything is possible!
Did you know we offer an acquisition Consultancy and agency service? For established businesses with something to offer that companies will want to buy we can potentially help. For more information, or to get in touch: www.KidsBrandInsight.com