Van Nuys, California-based MGA Entertainment is getting into the preschool toy market with its acquisition of Little Tikes. Well-known for its bright Cozy Car Coupe, which has sold more than six million units since its creation, the kids toy and furniture manufacturer brought in about US$250 million in revenue for previous owner Newell Rubbermaid in 2005.
‘Preschool is the fastest growing segment of the toy business. We will take this brand to new levels with product innovation and strategic marketing,’ says MGA CEO Isaac Larian. He also plans on keeping manufacturing and warehousing in Hudson, Ohio, but doesn’t know at this point whether there will be layoffs. MGA didn’t disclose the amount of the buyout, but a released statement from Newell Rubbermaid reveals it expects to record a net gain of between US$15 million and US$25 million in Q4 related to the transaction. KC