TORONTO—Spin Master Corp. is heading outdoors.
The Toronto-based manufacturer announced Aug. 2 that it will buy American pool toy maker Swimways Corp. for US$85 million in cash. The deal will allow the company to establish a foothold in the outdoor toy market, as well as bring a number of popular brands under its banner.
“Spin Master is committed to growth through diversification, innovation, expanding our global presence and making strategic acquisitions,” Ben Gadbois, the company’s president and COO, said. “With the Swimways acquisition, we can do all of these.”
Gadbois added that Spin Master is “well-equipped” to build out Swimways’ sales through its international network.
Swimways’ sales totaled approximately $90 million in 2015; the company has 149 employees across operations in Virginia Beach, Tarboro, N.C. and Guangzhou, China. After closing the acquisition, the Toronto toy maker plans to allow Swimways to operate as a stand-alone subsidiary, leaving the company’s management in place at its Virginia headquarters.
In addition to the $85 million upfront purchase price Spin Master will pay the company up to $8.5 million, contingent on the brand’s sales growth.