PLAINVIEW, N.Y., Nov 9, 1999 /PRNewswire via COMTEX/ -- Toymax
International, Inc. (Nasdaq: TMAX), announced today that it signed a
definitive agreement to acquire the Funnoodle product line from
KidPower, Inc. Funnoodle is a highly recognized consumer brand of pool
and backyard water recreational products and a leader in those
categories. The original Funnoodle was introduced in 1993. Over 40
million of these brightly colored foam water toys have appeared in
swimming pools and beaches since then. The terms of the agreement were
not disclosed and the acquisition is subject to certain conditions of
closing including the Hart Scott Rodino clearance. The closing is
expected by November 30, 1999 and is expected to be modestly accretive
to Toymax earnings in the fourth quarter of fiscal 2000.
"We believe this is a great strategic acquisition for us on a number of
levels," said Steven Lebensfeld, Toymax President. "Funnoodle has
consistently ranked among the best selling summer toys in the United
States. The full product line includes the original Funnoodle, floating
pool mats, swim rings, lawn sprinkler toys, and exercise mats, which
represents a strong complement to our existing Go Fly A Kite
spring/summer business."
Mr. Lebensfeld continued, "The addition of the Funnoodle business
facilitates our strategy to further broaden Toymax's product offerings
and importantly, it is counter seasonal to our traditional toy
business. Additionally, this acquisition represents another positive
step in our positioning as a leading provider of leisure and
entertainment products for kids."
Mr. Lebensfeld further noted that Funnoodle will be part of the Toymax
Enterprises group, which is headed by Barry Shapiro. As part of the
agreement, and in order to ensure that all of the Funnoodle customers
will be serviced in a timely and efficient manner, Toymax and KidPower
have entered into a three year management services agreement. Kidpower,
Inc. will continue to market and sell the remainder of its product
lines.
About Toymax Toymax (http://www.toymax.com) is a children's consumer
products company that creates, designs and markets innovative and
technologically advanced toys and leisure products. Toymax products
promote fun and creative play and are available under several brands:
Toymax(R) toys, such as R.A.D.(TM) Robot, Mighty Mo's(TM) vehicles, the
award-winning Laser Challenge(TM) and Creepy Crawlers(R) brands and a
new line of educational hand-held and tabletop electronics under the
Jumpstart(TM) brand licensed from Knowledge Adventure Inc., and the
Math Blaster(TM) brand licensed from Davidson & Associates, Inc.; Go
Fly A Kite(R) kites, windsocks and banners; Candy Planet(TM) candy
products; and Monogram(R) gift, novelty and souvenir products. Toymax
is headquartered in Plainview, N.Y. and its products are available at
retailers worldwide.
The statements made in this press release contain certain
forward-looking statements. The Company cautions readers that all
forward-looking statements are necessarily speculative and accordingly
undue reliance should not be placed on any such forward-looking
statements, which only speak as of the date made. Actual results may
vary materially from those anticipated by the Company for a variety of
reasons, including, without limitation, changing consumer demand for
its products, a reliance on new product introductions, seasonal and
quarterly fluctuations, and the failure to close the acquisition. The
risks highlighted herein should not be assumed to be the only things
that could affect the future performance of the Company. The Company
undertakes no obligation to publicly release the results of any
revisions to these forward-looking statements, which may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. Readers are referred to the
documents filed by the Company with the Securities and Exchange
Commission, specifically, the most recent reports filed under the
Securities Exchange Act of 1934 and the registration statement filed
pursuant to the Securities Act of 1933, which identify important risk
factors.
SOURCE Toymax International, Inc.
(C) 1999 PR Newswire. All rights reserved.
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