toys

ACON’s Funko Buys Loungefly

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Funko, a portfolio company of ACON Investments, has entered into an agreement to acquire Loungefly, a fashion accessories company. ACON acquired Funko from Fundamental Capital in November 2015.

Loungefly designs and sells a wide selection of handbags and fashion accessories under licensed brands that include Disney, Marvel, Star Wars, Sanrio, and Pokémon. Loungefly products are sold through specialty stores, boutiques and department stores nation-wide. The company was founded in 1998 and is headquartered in Los Angeles (www.loungefly.com).

“We have long admired Loungefly and the company’s unique and differentiated collection of accessories and are excited to welcome them to the Funko family,” said Brian Mariotti, CEO of Funko. “As we continue to extend our business into new and existing categories, this transaction provides us with key capabilities in the accessory and handbag category. We see tremendous opportunities to combine their creative design process with our speed-to-market capabilities, expanded distribution channels, and broad license portfolio to deliver accessories to our loyal fans featuring their favorite pop culture icons and characters.”

Funko designs, imports and markets a portfolio of collectible products under licensing agreements with most of the leading creators and marketers of pop culture today. Funko deploys these licenses across several product platforms including vinyl figures, bobble-heads and plush characters. The company’s products are sold through multiple retail outlets including specialty stores, mass-market retailers, e-commerce, international and direct-to-consumer. Funko was founded in 1998 and is headquartered in Everett, WA (www.funko.com).

“As a leader in pop culture consumer products, Funko is the ideal partner for Loungefly’s portfolio of licensed and branded lifestyle accessories,” said Trevor Schultz, founder of Loungefly. “We look forward to working with the innovative Funko team to extend our unique product offering into new channels of distribution and licenses.”

Intrepid Investment Bankers (www.intrepidib.com) is the financial advisor to Loungefly.

© 2017 Private Equity Professional | May 23, 2017

ACON Adds On to Funko

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Funko, a portfolio company of ACON Investments, has acquired the assets of Underground Toys, a creator, manufacturer and distributor of licensed toy products. ACON acquired Funko from Fundamental Capital in November 2015.

Underground Toys is a supplier of gift items, girls’ and boys’ toys, and adult collectibles under licensed brands that include Star Wars, Doctor Who, Marvel, WWE and DC Comics. The company’s licensed plush and homewares products are sold in 27 territories including Australia, France, Germany and the United Kingdom. Underground Toys was founded in 2001 and has offices in London and Hong Kong (www.underground-toys.com).

Funko designs, imports and markets a portfolio of collectible products under licensing agreements with most of the leading creators and marketers of pop culture today. Funko deploys these licenses across several product platforms including vinyl figures, bobble-heads and plush characters. The company’s products are sold through multiple retail outlets including specialty stores, mass-market retailers, e-commerce, international and direct-to-consumer. Funko was founded in 1998 and is headquartered in Everett, WA (www.funko.com).

Funko and Underground Toys have had a business relationship since January 2014 when the two companies entered into a European distribution agreement for Underground Toys to exclusively distribute Funko products to a network of European retailers, including Toys “R” Us, Tesco, ASDA Stores, Carrefour, and FNAC.

“Over the last two years our relationship with Underground Toys has resulted in an extensive increase in the distribution of our products throughout Europe,” said Brian Mariotti, CEO of Funko. “This transaction will expand upon our already successful relationship and fully unite Funko with the Underground Toys team to support and advance our international growth strategy. We are excited to apply our unparalleled creative design and speed-to-market capabilities to drive continued growth in the business and position ourselves to capitalize on the tremendous opportunities ahead.”

ACON invests from $20 million to $150 million of equity capital in middle-market companies. The firm pursues a theme-based investment strategy by focusing on industries and businesses at key inflection points in their development and pursues these opportunities in partnership with established management teams. The firm was founded in 1996 and has offices in Washington, DC (headquarters); Los Angeles; Mexico City; Sao Paulo; and Bogota (www.aconinvestments.com).

© 2017 Private Equity Professional | January 24, 2017

Propel Acquires Buzz Bee Toys

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Alex Brands, a portfolio company of Propel Equity Partners, has acquired Buzz Bee Toys. This transaction is the eighth add-on acquisition for Alex Brands since the platform was launched by Propel in August 2012 with the buy of Poof-Slinky.

“This acquisition is yet another step in our strategy of building Alex Brands into a home of best-in-class brands in the toy industry and an indication of our strong belief in the health and vitality of this sector,” says Michael Cornell, Chairman and CEO of Propel Equity Partners.

First introduced in 2002, the Buzz Bee Toys’ portfolio of brands includes Air Warriors, Water Warriors and Ruff Stuff and provides an active play experience with a line of products ranging from dart blasters and water blasters to water toys, flying toys, role play, and junior sports offerings. Buzz Bee Toys was founded in 2002 and is headquartered east of Philadelphia in Mt. Laurel, NJ (www.buzzbeetoys.com).

Alex Brands is a family of brands owned by Propel Equity Partners that includes some of the most iconic brand names in the toy industry.  Owned brands include Alex Toys, Poof, Slinky, Scientific Explorer, Ideal, Zoob, Backyard Safari, Zillionz, CitiBlocs, and Shrinky Dinks.  The company also has an agreement with Nickelodeon to manufacture, distribute and market products based on a variety of popular characters, including SpongeBob SquarePants, Dora and Friends, and Teenage Mutant Ninja Turtles.  Alex Brands is based north of Newark in Northvale, NJ (www.alexbrands.com).

“The addition of Buzz Bee Toys builds on the momentum that Alex Brands has been generating, most recently through our licensing partnership with Nickelodeon in February 2015 and the merging of Shrinky Dinks, which we acquired in December 2014, into our family of brands,” said Neil Friedman, President and CEO of Alex Brands.

2015 PEPD • Private Equity’s Leading News Magazine • 5-15-15

Irving Place Capital Acquires Bendon from Wicks

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Irving Place Capital has completed its acquisition of Bendon, a provider of non-licensed and licensed children’s coloring and activity products, from The Wicks Group.

“We have experienced strong growth with the Wicks team, and they have been a valuable partner to us throughout their ownership,” said Bendon’s Chief Executive Officer, Ben Ferguson.  “We’ve built a better, more profitable business together, and we are excited to be teaming with Irving Place to continue our expansion, both organically and through acquisitions.”

Bendon is a designer and producer of children’s coloring and activity products.  The existing product portfolio includes coloring and activity books, kits, sets and play packs, puzzle books, box puzzles, and other early childhood development games.  By utilizing a licensed portfolio of the world’s most popular children’s characters and brands, Bendon sells more than 350 million units per year in more than 80,000 retail outlets in North America. The company was established in 2002 and is headquartered in Ashland, OH with five additional offices in the US (www.bendoninc.com).

“This is an attractively positioned, exciting company with significant potential,” said John Howard, Chief Executive Officer at Irving Place Capital. “We are thrilled to be in partnership with Ben and his team, and we look forward to continuing the success and growth they have enjoyed under Wicks’ ownership.”

Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities. The firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 60 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is based in New York (www.irvingplacecapital.com).

Wicks Capital Partners acquired Bendon in February 2012. The firm invests in lower-middle-market companies operating in select segments of the information, education and media industries principally in the United States and Canada.  Sectors of specific interest include educational content and services, business services and information, consumer information, healthcare information, radio and television broadcasting, and other media. The firm was founded in 1989 and is headquartered in New York (www.wicksgroup.com).

“Over the last few years, Ben Ferguson and his team have established Bendon as a true market leader in its categories. We were delighted to have had the chance to work closely with them and are excited to see what they can accomplish with their new partners at IPC. We wish them both continued success,” said Daniel Black, Managing Partner at Wicks.

Robert W. Baird & Company acted as financial advisor to Wicks on the transaction. Kirkland & Ellis served as legal counsel to Irving Place Capital.

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-31-15

Winona Invests in Fat Brain Toys

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Winona Capital has made an investment in Fat Brain Toys, a specialty and educational toy company founded in 2002 by husband and wife team Mark & Karen Carson.

“After building up a solid foundation over the last 12 years, we are excited for the opportunity to expand our unique brand of toys with the help of Winona Capital,” said Mark Carson, President and Co-Founder of Fat Brain Toys. “We’ve been quietly creating the best toy store the average consumer has never heard of, but now we’re ready to make some noise.”

Fat Brain Toys is a retailer and manufacturer of educational toys and games. The company operates one of the largest online toy stores, two physical storefronts, and wholesales its products to over 2,000 retailers domestically and around the world. At the American International Toy Fair held last month in New York, Fat Brain Toys garnered three separate nominations for “Toy of the Year”.  The company is based just west of Omaha in Elkhorn, NE (www.fatbraintoys.com).

“We are thrilled to partner with Mark, Karen, and the entire Fat Brain Toys team. Theirs is a great entrepreneurial success story, and we are honored to be part of the business going forward,” said Jason Starr, a Principal at Winona Capital. “The company has a tremendous opportunity, not just for amazing continued growth, but to deliver ‘a smarter way to play’ for children everywhere.”

Winona Capital provides acquisition and growth capital to consumer goods and services businesses in the lower middle market that have revenues from $10 million to $100 million.  The firm manages more than $300 million on behalf of the Laird Norton family office and other institutional investors. Winona Capital is headquartered in Chicago (www.winonacapital.com).

“Through the success of our Tobbles and Squigz line of toys, we have tapped into a receptive audience of consumers that are seeking open-ended, creative play,” explained Mr. Carson. “In an era of digital entertainment and media-driven fads, Fat Brain is proof that toys don’t need licensed characters or batteries to be successful.”

New York-based investment bank Sonenshine Partners (www.sonenshinepartners.com) served as investment banking advisor to Fat Brain Toys.

© 2015 PEPD • Private Equity’s Leading News Magazine • 3-5-15

Propel Equity Partners Acquires Shrinky Dinks

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Alex Brands, a portfolio company of Propel Equity Partners, has acquired the Shrinky Dinks brand of toys.

Shrinky Dinks offers a variety of products and play patterns based upon plastic sheets that can be cut, colored and then shrunk and hardened into an endless amount of original designs.  Alex Brands has historically licensed the Shrinky Dinks brand for use in the Alex Toys product line.

Alex Brands is a family of brands owned by Propel Equity Partners that includes some of the most iconic brand names in the toy industry.  Owned brands include Alex Toys, Poof, Slinky, Scientific Explorer, Ideal, Zoob, Backyard Safari, Zillionz and CitiBlocs.  Alex Brands is based in Northvale, NJ (www.alexbrands.com).

“Our selection of Shrinky Dinks licensed kits has been an important and successful part of our product line,” said Neil Friedman, President and CEO of Alex Brands. “This acquisition is a great opportunity to further leverage the Shrinky Dinks brand and play pattern across many of our toy lines.”

Propel Equity Partners (formerly MCC Capital Partners) invests up to $50 million of equity in branded consumer products businesses with$10 million to $100 million of revenue and adjusted EBITDAs from $2 million to $20 million. The firm was founded in 2012 and is based in Greenwich, CT (www.propelequity.com).

2014 PEPD • Private Equity’s Leading News Magazine • 12-18-14

Topspin Partners Acquires Onaroo

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Patch Products, a toy company acquired by Topspin Partners in September 2014, has acquired the Onaroo brand of night lights and alarm clocks for children from American Innovative.

The buy of the Onaroo brand allows Patch to expand into a new, complementary category of children’s room décor.  “Patch is moving quickly and looking for opportunities to grow and expand. Onaroo is a strong strategic fit with Patch Products and will complement our existing products very well, while also allowing us to expand into new categories,” said Patch CEO Bob Wan.

The Onaroo line includes several award-winning products such as a talking bedside alarm clock and night light sold under the Teach Me Time!™ brand, a plush sleep buddy night light with music sold under the OK to Wake!™ brand, and Owl, a whimsical portable night light brand.

“The acquisition of Onaroo is part of Patch’s strategy to build a leading company with high quality products serving both the specialty and mass channels in the toy and juvenile products industries,” said Stephen Lebowitz, Managing Director at Topspin Partners.

Patch Products designs, manufactures, distributes and markets games, children’s puzzles, preschool toys, creative activities and teaching tools.  Top-selling brands include 5 Second Rule®, Don’t Rock the Boat™, Farkle®, The Game of THINGS…®,Mirari®, 100 Wacky Things®, Lauri® and Wooly Willy®. Patch also has distribution rights for Perplexus™, Wood WorX™ and Stratego®.  The company was founded in 1985 and is headquartered in Beloit, WI (www.patchproducts.com).

Topspin Partners makes control investments in profitable and established lower middle-market businesses. Sectors of interest include business and information services, health and wellness, leisure, food and beverage, and security.  The firm is based near New York City in Roslyn Heights, NY (www.topspinpe.com).

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14

Topspin Acquires Patch

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Topspin Partners has acquired toy company Patch Products from its founders Fran and Bryce Patch.

Patch Products designs, manufactures, distributes and markets games, children’s puzzles, preschool toys, creative activities and teaching tools.  Top-selling brands include 5 Second Rule®, Don’t Rock the Boat™, Farkle, The Game of THINGS…®,Mirari®, 100 Wacky Things®, Lauri® and Wooly Willy®. Patch also has distribution rights for Perplexus™, Wood WorX™ and Stratego®.  The company was founded in 1985 and is headquartered in Beloit, WI (www.patchproducts.com).

“The growth Patch has seen in recent years is a result of its diverse, multi-category product line and its distribution in both mass and specialty retailers,” said Stephen Lebowitz, Managing Director at Topspin.  “We are excited to have found this outstanding company and are looking forward to supporting its management team and building upon its strong foundation.”

Post-closing, the Patch management team, led by CEO Bob Wann, will remain with the company. Mr. Wann is a prominent member of the toy industry, serving on both the Toy Industry Foundation Board of Directors and as Treasurer on the Executive Committee of the Toy Industry Association’s Board of Directors.

“We are excited to have Topspin as our partner going forward. It was very apparent from all of our discussions that Topspin shares the same excitement and support for the strategic vision we have for Patch.  This, combined with the additional financial resources that they can provide, will trigger further expansion and growth for Patch.” said Mr. Wann.

Topspin Partners makes control investments in profitable and established lower middle-market businesses. Sectors of interest include business and information services, health and wellness, leisure, food and beverage and security.  The firm is based near New York City in Roslyn Heights, NY (www.topspinpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 9-19-14

Wicks Capital Partners Acquires Artistic Studios

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Bendon, a portfolio company of Wicks Capital Partners, has acquired Artistic Studios, Ltd. The acquisition provides an entry into the premium craft market and adds to Bendon’s position as a leader in the US children’s coloring and activity sector.

Artistic Studios produces and sells children’s activity products, art sets, and crafts in various retail channels, with a strong distribution presence in the wholesale club channel. The company is based in San Francisco (www.artistic-studios.com).

“The acquisition of Artistic Studios represents an exciting opportunity to expand Bendon’s product offerings, distribution, scale, and geographic reach,” said Daniel Black, Managing Partner at Wicks. “The Bendon team has done an excellent job securing industry-leading retail presence including a stronghold in the value segment of the market. Along with our purchase of Dalmatian in 2013, this acquisition firmly cements Bendon’s position as a leader in the fragmented US children’s activity products sector and propels the company into its next phase of growth.”

Bendon is a designer and producer of children’s coloring and activity products.  The company utilizes a licensed portfolio of the world’s most popular children’s characters and brands.  Bendon sells more than 350 million units per year in more than 80,000 retail outlets in North America. The company is based in Ashland, OH (www.bendoninc.com).

“We have closely followed the Artistic Studios business over the past few years and have been impressed with its product portfolio and distribution footprint both domestically and abroad. As we continue to grow, this acquisition provides a natural upmarket extension into the adjacent craft and activity segment,” said Ben Ferguson, CEO of Bendon.  “Artistic Studios’ complementary products and distribution network immediately give us significant opportunities to expand our reach with new retailers and within new departments of existing retailers as well as to grow our international presence.”

Wicks Capital Partners invests in lower-middle-market companies operating in select segments of the information, education and media industries principally in the United States and Canada.  Sectors of specific interest include educational content and services, business services and information, consumer information, healthcare information, radio and television broadcasting, and other media. The firm was founded in 1989 and is headquartered in New York (www.wicksgroup.com).

2014 PEPD • Private Equity’s Leading News Magazine • 8-7-14

Propel Equity Acquires Summit Products

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Alex Brands, a portfolio company of Propel Equity Partners, has acquired toy company Summit Products.

Summit Products is a maker and marketer of toys sold under the brand names Zillionz, Backyard Safari, Covert Force, Test Pilot, and Stink Bugzz. The company was founded in 1995 and is based in Birmingham, AL (www.summittoy.com).

“From Zillionz, which was designed to help children better understand the value of money through play, to Backyard Safari, which celebrates the natural sciences, the brands we are bringing into Alex Brands align perfectly with our core mission,” says Michael Cornell, Chairman and CEO of Propel Equity Partners. “We are a company dedicated to providing high quality, innovative and trend leading toys that encourage exploration, build confidence and introduce valuable skills. These brands – including the emphasis upon learning through creative play – will help us further deliver upon that commitment.”

Alex Brands is a family of brands owned by Propel Equity Partners that includes some of the most iconic brand names in the toy industry, including Alex Toys, Poof, Slinky, Scientific Explorer, Ideal and Zoob.  The company is based in Northvale, NJ (www.alextoys.com).

Propel Equity Partners (formerly MCC Capital Partners) invests up to $50 million of equity in branded consumer products businesses with$10 million to $100 million of revenue and adjusted EBITDAs from $2 million to $20 million. The firm was founded in 2012 and is based in Greenwich, CT (www.propelequity.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 5-19-14

Propel Equity Partners Acquires ZOOB

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Propel Equity Partners has acquired the ZOOB construction toy line from Infinitoy.

Introduced in 1997, ZOOB is an award-winning building set with pieces that move after you put them together.  ZOOB pieces are based on a natural and living system and features five basic pieces that snap together 20 different ways, making building easy and versatile.  With more than 30 different themed sets, ZOOB products are sold throughout the US and in more than 100 countries through a variety of distribution channels (www.infinitoy.com/zoob‎).

Propel Equity Partners  will operate ZOOB under its existing portfolio company POOF-ALEX Holdings, LLC which includes Slinky, POOF, Ideal, Scientific Explorer, Fundex Games and ALEX toy brands.  POOF-Slinky was acquired by Propel Equity Partners in July of 2012, with Fundex Games acquired in December of 2012 and ALEX Toys in May of 2013.

“There’s tremendous interest in construction toys that are intuitive, easy to use and educational,” said Michael Cornell, Chairman and CEO of Propel Equity Partners. “ZOOB is a prime example of this. Its interlocking pieces excel at helping children improve their abilities with spatial relationships, motor skills and problem-solving – and therefore are highly favored by parents.

Propel Equity Partners (formerly MCC Capital Partners) invests up to $50 million of equity in branded consumer products businesses with$10 million to $100 million of revenue and adjusted EBITDAs from $2 million to $20 million. The firm was founded in 2012 and is based in Greenwich, CT (www.propelequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-12-13

Crofton and Gladstone Acquire Schylling Toys

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Schylling Associates, an independent toy and gift designer, manufacturer and distributor, has been acquired by Crofton Capital and Gladstone Investment Corporation.

Schylling is a designer, manufacturer and distributor of branded toys, gifts and collectible products to independent stores and large retailers. Products include contemporary versions of classic toys and collectables inspired by iconic playthings including jack-in-the-boxes, sock monkeys, tin robots and tin vehicles. The company’s products are sold under the Schylling brand and under licenses from Thomas & Friends, Uglydoll, Curious George, Babar and Warner Brothers’ The Wizard of Oz. Schylling also distributes products for LEGO, BRIO, Lava Lamps, Moshi Monsters, Angry Birds, Sea Monkeys and Erector. The company is headquartered in Rowley, MA (www.schylling.com).

As part of this transaction, Paul Weingard has become President of Schylling. He most recently led product development at Schylling for five years, and brings 30 years of toy industry experience to his new role. Founder Jack Schylling is assuming an advisory role focused on providing creative support. David Schylling will continue in a business development leadership role.

“We’re extraordinarily excited about Schylling’s future. We see tremendous opportunities for product innovation, brand development and expanded distribution that will fuel continued growth,” said Mr. Weingard. “Our new partners bring the capital and complementary resources that will enable us to continue to build on our leadership position of classic fun in the independent toy arena.”

Crofton Capital invests in and provides strategic resources to small and midsize businesses that have annual revenues of up to $50 million and operating cash flow of $1 million to $5 million and are based primarily in the northeast. Sectors of interest include consumer products and services, niche manufacturing, value-added distribution, business services, and software and technology-enabled services. Crofton Capital is based in Wellesley, MA (www.croftoncap.com).

Gladstone Investment Corporation (NASDAQ: GAIN) is a publicly-traded business development company that makes debt and equity investments in US-based small to middle-market businesses. Target investments generally range from $5 million to $30 million in companies with over $3 million in EBITDA. Sectors of interest include light and specialty manufacturing, industrial products, business and government services, media and communications, consumer products and services, healthcare services, transportation, specialty chemicals and energy services. Gladstone is based in McLean, VA with additional offices in New York, Chicago, and Los Angeles (www.GladstoneInvestment.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 8-15-13

Fundamental Capital Acquires Funko

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Fundamental Capital has acquired Funko, a designer and marketer of licensed collectible products such as vinyl figures, bobble-heads and plush characters.

“Over the last several years, CEO Brian Mariotti and the entire Funko team have built an exceptional business in the space where collectibles and pop culture meet. We are honored and excited to partner with management to take part in the next phase of Funko’s growth,” said Rich McNally, a Partner at Fundamental Capital.

Funko designs, imports and markets an array of collectible products under licensing agreements with most of the leading creators and marketers of pop culture today. Funko deploys these licenses across several product platforms including vinyl figures, bobble-heads and plush characters. The company’s products are sold to a diverse customer base that represents most major retail channels. Funko is based in Lynnwood, WA (www.funko.com).

Fundamental Capital invests in small to mid-sized growth companies operating in the consumer products and services sectors that have revenues between $5 million and $50 million and EBITDA of at least $2 million. The firm was founded in 2004 and is based in San Francisco (www.fundamentalcapital.com).

Greene Holcomb Fisher (GHF) advised Funko on this transaction. “We are thrilled to have had the opportunity to work with the Funko team to help facilitate this recapitalization. Funko is one of the most unique and creative pop-culture companies in the country today and this transaction will enable them to continue their rapid growth domestically and internally,” said Cameron Hewes, Managing Director at GHF.

Greene Holcomb & Fisher maintains offices in Minneapolis, Phoenix, Seattle and Atlanta and specializes in middle market mergers and acquisitions, private placements and financial advisory services (www.ghf.net).

“Our entire management group is looking forward to working with Fundamental Capital as we continue to execute our growth plan. The team at GHF did an outstanding job helping us to find the right structure and partner to meet our needs,” said Brian Mariotti, CEO of Funko.

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-14-13

Propel Equity Partners Acquires ALEX

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Propel Equity Partners has acquired ALEX, a maker of children’s creative products. ALEX joins other toy brands owned by Propel including POOF-Slinky, acquired in July of 2012, and Fundex Games, acquired in December of 2012.

ALEX develops and markets art and crafts related products used by children. The brand features more than 1,000 items for all ages, from infants to ‘tweens, and has expanded to include products for imaginative and dramatic play, fashion and jewelry, and bath and outdoor toys. ALEX products are sold in more than 80 countries through a variety of distribution channels. The company was founded in 1986 and is based in Northvale, NJ (www.alextoys.com).

ALEX founders Nurit & Rick Amdur will remain with the company, while Fred Keller, President of POOF-Slinky, will take on the additional title of President of ALEX.

“ALEX has developed into a leading lifestyle brand for kids, presenting tremendous opportunities for expansion,” says Michael Cornell, Chairman and CEO of Propel Equity Partners. “This acquisition represents another step in our mission of bringing the most innovative and successful companies in the toy and craft industry under our umbrella.”

Propel Equity Partners (formerly MCC Capital Partners) invests up to $50 million of equity in branded consumer products businesses with$10 million to $100 million of revenue and adjusted EBITDAs from $2 million to $20 million. The firm was founded in 2012 and is based in Greenwich, CT (www.propelequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-29-13

Propel Equity Partners Invests in POOF-Slinky

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POOF-Slinky, a maker of toys under the Slinky, POOF, Ideal, Cadaco, Scientific Explorer and Fuzzoodles brands, has received a significant investment from Propel Equity Partners.

POOF-Slinky manages a portfolio of recognizable branded toys, sports balls, educational activity kits, table top and board games and novelty products. Best known for its classic metal Slinky and Slinky Dog products and POOF foam balls, POOF-Slinky products are sold in more than 35,000 retail outlets. The company operates two manufacturing plants in Michigan and Pennsylvania and has over 125 employees. The company is managed by CEO Ray Dallavecchia Jr. and COO Doug Ferner. POOF-Slinky was founded more than 65 years ago and is based in Plymouth, MI (www.poof-slinky.com).

“In what is a fragmented industry, POOF-Slinky has consistently excelled as a leader,” says Michael Cornell, Partner, Propel Equity Partners. “Ray and Doug have put together an impressive stable of authentic toy brands that we believe have tremendous additional opportunities for growth at retail in the $20 billion plus toy market. We are looking forward to applying our expertise in the consumer products category to help POOF-Slinky accelerate organic growth, maximize brand potential, expand U.S. production capacity and make strategic acquisitions.”

Propel Equity Partners (formerly MCC Capital Partners) is a private equity firm focused on investments in branded consumer products businesses. Propel Equity Partners provides its portfolio companies with strategic and operational support to enable more efficient operations and accelerated sales growth. The firm is based in Greenwich, CT (www.propelequity.com).

“Propel Equity Partners has a strong track record of partnering with management teams of consumer products companies and providing the capital and expertise needed to help those companies reach new levels of growth and profitability,” says Ray Dallavecchia. “Propel showed particular knowledge and interest in the toy category, and we are looking forward to leveraging the additional resources and building upon our strong existing business.”

The “slinky” was developed in 1943 by naval engineer Richard James as an outgrowth of his work developing cushioning devices for warships; it was his wife, Betty who gave it the “slinky” name. The toy debuted at Gimbel’s Department Store in Philadelphia in 1945. Since then, more than 300 million Slinky’s have been sold. The Slinky is still manufactured in Hollidaysburg, PA, with the original equipment Richard James built.