YIKEs- look what we missed.....DSI Toys, Inc. Announces Merger
HOUSTON, Oct 8, 1999 (BUSINESS WIRE) -- DSI Toys, Inc. (the Company)
(Nasdaq: DSIT) is pleased to announce that it has signed a definitive
agreement to merge with Meritus Industries, Inc. (Meritus), a privately
held toy manufacturer headquartered in Fairfield, NJ, with offices and
distribution facilities in Hong Kong. The parties plan to close the
transaction in January of 2000, subject to customary closing
conditions.
Under the agreement announced today, Meritus will merge into the
Company, with the shareholders of Meritus receiving merger
consideration consisting of 600,000 shares of the Company's common
stock and $2.79 million in other consideration, consisting of cash and
a promissory note. The transaction also entitles Meritus to one board
seat, which will be added to the current six-member board of DSI.
Meritus is a leader in the manufacture and marketing of innovative
dolls, doll houses, doll accessories, and girls' toys such as Baby
Beans(R), soft bean bag dolls, Forever GIRL FRIENDS(R), a line of
accessories for 11 1/2" fashion dolls, and Little Darlings(TM), value
priced action feature dolls. Meritus recently introduced Elite
Dolls(TM), created specifically to manufacture and market "Lifetime
Play Dolls," a new category of exquisite 18" dolls and accessories
suitable for playing or collecting. Meritus products are currently
available at major retail toy outlets and specialty stores and are sold
in more than 40 countries worldwide.
"The Meritus merger is very important to DSI Toys" stated Michael J.
Lyden, DSI's CEO and President, "It offers DSI an extended platform in
the doll and girls' toy segments of the toy business while providing
significant financial consolidation benefits. We believe that the
combination of DSI dolls with Meritus dolls and girls' toys will
position the Company as a truly significant supplier of girls'
products."
"This transaction should provide a great opportunity to combine the
various talents at DSI and Meritus to extend existing product lines and
develop new ones in 2000 and beyond," commented Walter S. Reiling,
owner of Meritus.
DSI Toys, Inc. (Nasdaq: DSIT) designs, develops, markets and distributes
high quality, value-priced toys and children's consumer electronics.
Core product categories are juvenile audio products (including
Tech-Link(TM) and Digi-Tech(TM) walkie-talkies, pre-teen audio products
and Kawasaki(R) musical toys), girls' toys (including dolls, play sets
and accessories), and boys' toys (including Kawasaki(R) and Burnin'
Thunder(TM) radio control vehicles, BLOCKMEN(R) construction sets, and
western and military action toys). The Company's web sites can be
reached at dsitoys.com and blockmen.com. |
