Wham-O, Inc., the manufacturer of Frisbee, the Original Slip 'N Slide, Hula Hoop and Hacky Sack, among other innovative fun products, announced that an affiliate of Cornerstone Overseas Investments Limited had completed the acquisition of the business of Wham-O from the existing private equity fund which owned it.
Cornerstone is a privately-held, Hong Kong-based worldwide manufacturer and distributor of a broad range of toys, games and outdoor related consumer products and, along with its affiliated companies, is considered one of the leading China-based toy industry companies, with expanding investments in Europe and North America.
“This is a fantastic opportunity to amass several legendary and leading brands in the toy and recreational outdoor businesses, which will provide synergies to our existing portfolio companies with its strong international brand recognition,” said Cornerstone CEO Jeff Hsieh. “This exciting portfolio will afford all of the Cornerstone group of companies with attractive new licensing opportunities,” Mr. Hsieh continued.
“Cornerstone is building a complete vertical operation in the toy and outdoor recreational related consumer product arenas, through strategic acquisitions and investments,” stated James Rybakoff, CEO of Akin Bay Company LLC, Cornerstone's investment bankers who handled the acquisition and the financing for Cornerstone.
“This acquisition provides the Cornerstone group of companies the chance to leverage our worldwide manufacturing and distribution infrastructure with a classic and highly recognized brand name in outdoor recreation products dating back to the 1940's,” continued Hsieh.
Wham-O's continuing president Mojde Esfandiari said, “This transaction will provide us with expanded capabilities and resources to continue our rapid growth and product offerings to our mass, sporting goods and specialty worldwide customers which have partnered with us in recent years.”
Cornerstone believes the acquisition is occurring at an opportune time in the industry's cycle, before the upcoming International Toy Fair in February in New York, where manufacturers typically launch important new product and marketing initiatives. Cornerstone's management expects to assist Wham-O in many aspects of its operations, including sourcing of production in its extensive manufacturing facilities in the South China factory zone and offering Wham-O's products through its strong international distribution network.
“Cornerstone expects a seamless transition with Wham-O's management, vendors and customers, which should all benefit from Cornerstone's size, financial stability and operational expertise, and that Cornerstone and Wham-O's management are committed to assuring Wham-O's customer base of a continued stream of innovative products of the highest quality, with a new dedication to customer service and business continuity,” continued Mr. Hsieh.
