Toys "R" Us acquires RIOT Art & Craft to strengthen Ecommerce strategy

Toys "R" Us has announced its acquisition of key assets from RIOT Art & Craft, in an effort to fuel its expansion into Ecommerce. RIOT has a a history spanning over 50 years in Australia and is known for its strong customer base and presence in the arts and crafts industry.

Transaction snapshot

  • Deal value: N/A
  • Deal multiples: N/A
  • Deal type: Acquisition of key assets, including stock, brands, and intellectual property (IP).
  • Investors: Toys "R" Us

Penny Cox, CEO of Toys "R" Us since August last year, expressed enthusiasm about the acquisition, highlighting it as a strategic move towards becoming a diversified House of Brands. The acquisition aims to integrate RIOT's high-margin product lines and strong brand reputation with Toys "R" Us' Ecommerce platform, to enhance the company's innovation and creative offerings.

Toys "R" Us anticipates that this merger will offer exciting opportunities by combining RIOT's significant customer base with Toys "R" Us' network. This includes approximately 540,000 retail and 2,400 wholesale customers from RIOT, expected to facilitate cross-marketing and drive sales growth across various product categories.

The deal is also supported by external funding, with Mercer Street Global Opportunity Fund II LP contributing up to $5 million. This financial backing underscores the international appeal of the Toys "R" Us brand and its ongoing transformation strategy. CEO Penny Cox's additional personal investment further demonstrates confidence in the company's direction and growth potential.

This acquisition represents a critical step for TOY in solidifying its position within the online retail sector, aiming for efficiency improvements and a broader product portfolio that caters to a wide array of customer needs.

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