The world of toy manufacturing just got a bit smaller. Hasbro announced it has reached an agreement to purchase Tiger Electronics and its affiliates for US$335 million. It’s a figure that could change once Tiger’s inventory and equipment have been assessed and the deal has been finalized, which both companies expect will be by May or June.
For Hasbro, the acquisition of Tiger, one of the largest privately held toy companies in the world, gives it the opportunity to expand its expertise in the area of kids electronic entertainment technologies, says Alan Hassenfeld, chairman and CEO of Hasbro, in press release. For Tiger, the deal will allow it to grow its brands on a global level, Tiger CEO Randy Rissman says in the same release. Tiger is a leading manufacturer in the development of electronic entertainment for children. Some of its more popular toys include Giga Pets, Game.com, Laser Tag and Lites Out.
Once the deal is completed, Tiger will become a wholly owned subsidiary of Hasbro, with Rissman and the rest of the Tiger staff retaining their positions. Hasbro says there are no plans to move Tiger’s plant from its current Vernon Hills, Illinois, location.
Hasbro used the American International Toy Fair as a backdrop to announce the news of the acquisition, just days after releasing what it says are record increases in its annual earnings. For 1997, Hasbro’s revenues grew six percent, from US$3 billion in 1996 to US$3.2 billion in 1997.
ï Magicworks Entertainment gets Rugrats tour deal
As the exclusive tour merchandiser for the Rugrats live touring show currently appearing throughout the U.S., Magicworks Entertainment, through its merchandising division Diamond Bullet Merchandising, will design, manufacture and sell a line of Rugrats novelty items. The Rugrats merchandise, including figurines, T-shirts and hats, will be sold exclusively at the theaters where the live musical production, entitled Rugrats-A Live Adventure, appears. Show-specific merchandise includes plush and vinyl items, which have show logos and show elements designed into them. Other items, including a light-up toy, are also planned. The merchandise will be displayed in theaters in specially designed stands equipped with video screens and sound systems.