Spin Master Corp. has revealed a significant deal to acquire the U.S.-based toy manufacturer, Melissa & Doug, for a cash sum of $950 million. According to Spin Master CEO Max Rangel, Melissa & Doug is renowned for producing early childhood toys with a timeless product range that will expand Spin Master’s presence and contribute to revenue growth. This acquisition is part of Spin Master’s strategy to reimagine play experiences, focusing on the infant and preschool toddler market segment.
Melissa & Doug’s product line is well-regarded for its high-quality, open-ended, creative, and developmental toys, particularly favored by parents seeking sustainable wooden toys and screen-free play options. The company will continue to operate independently, with Fernando Merce serving as its CEO. The deal is set to bolster Spin Master’s earnings per share in 2024 and aligns with the company’s growth prospects in e-commerce, international expansion, and the development of Melissa & Doug’s core product offerings.
In terms of finances, Spin Master intends to finance the purchase price with approximately $450 million in balance sheet cash and $500 million in debt financing. Additionally, the agreement includes the potential for up to an extra $150 million based on certain financial performance targets for 2024 and 2025.
This acquisition comes shortly after Spin Master secured the global toy license for the Dora franchise reboot, which is set to bring a range of Dora-themed toys, figures, dolls, playsets, and more to the market in the fall of 2024.
