JAKKS Pacific to acquire Creative Designs

By Staff -- Playthings, 1/19/2006 12:42:00 PM

MALIBU, Calif.—JAKKS Pacific has signed an agreement to acquire Feasterville, Pa.-based Creative Designs International (CDI) and a related Hong Kong company. CDI manufactures dress-up and role-play items and holds licenses for brands including many Disney characters. The company made approximately $142.8 million in revenue for the 2004 calendar year.

The transaction is expected to be completed in the first quarter of 2006. So far, the estimated price of the deal is approximately $116.5 million, consisting of $93.3 million in cash and 150,000 shares of JAKKS common stock at a value of $3.2 million. If certain performance goals are met by 2008, an additional $20 million incentive is possible.

CDI president, Geoffrey Greenberg says of the deal, “JAKKS Pacific provides us with a base and solid infrastructure that will help us grow our business in a way that would not have been possible on our own. Our family has worked hard to build CDI and we’re thrilled to bring our products under the JAKKS Pacific umbrella.”