News

aNb Media News, March 15, 2011

UPDATE: Tomy Acquires RC2

As we reported last week, Tomy and RC2 Corporation announced (prior to the tragedy in Japan) that they have entered into a definitive agreement whereby Tomy will acquire RC2 through an all-cash tender offer and second-step merger valued at approximately $640 million.

The transaction was approved by the board of directors of Tomy. RC2’s board of directors has also approved the agreement and recommended that RC2’s stockholders tender their shares to Tomy pursuant to the offer. Tomy, through a U.S. subsidiary, will make an offer to purchase all outstanding shares of RC2 common stock for $27.90 per share. The tender offer price represents a 30.9 percent premium to RC2’s average closing stock price over the three-month period ended March 9, 2011, and a 27.2 percent premium over the closing price of RC2’s common stock on March 9, 2011. The tender offer is scheduled to commence in 10 business days and is expected to close during the second quarter of 2011. The tender offer is subject to certain customary conditions, including the tender of a majority of the outstanding shares of RC2’s common stock on a fully-diluted basis. The transaction is not conditioned on financing. Following completion of the tender offer, Tomy will acquire the remaining outstanding shares of RC2’s common stock for $27.90 per share through a second-step merger.

Kantaro Tomiyama, president and CEO of Tomy commented, “This merger further enables Tomy to move towards our goal of increasing our global profile adding significant additional business in North America and Europe, creating a stronger global platform for future growth. We have known and admired RC2’s excellent team and their achievements over their 22-year history, and look forward to their contribution to our combined group. The operational fit and future growth prospects make this an excellent transaction for our customers, employees, and shareholders.”

Curt Stoelting, CEO of RC2, added, “This is an exciting day for all of us at RC2 and we couldn’t be more pleased to be joining forces with the team at Tomy. Our management team together with Tomy’s looks forward to expanding our existing product lines, developing additional new brands and product categories and increasing our global reach to better serve our licensing partners, customers, and consumers.”

Jerry Leigh Acquires Fortune Fashions

Jerry Leigh of California, Inc., an apparel design, manufacturing, and brand management firm announced its acquisition of the assets formerly owned by Fortune Fashions. Fortune Fashions will operate as a division of Jerry Leigh and will continue to service its existing wholesale clientele.

Walmart Expands Shopping Options

Walmart announced plans to further expand its U.S. multichannel platform by launching a full-scale, national rollout of Pick Up Today later this month. The service enables customers to purchase items online and receive free same-day pickup at a local Walmart store.

Pick Up Today will begin its national rollout later this month and, by June, is expected to be available in nearly 3,600 Walmart stores nationwide. The service will also expand to include up to 40,000 items across multiple categories. Online orders are expected to be ready for pickup in about four hours, and orders placed after 6 p.m. are expected to be ready for pickup at 10 a.m. the next day.

Walmart also currently offers the following ways to shop.

Site to Store: Now in its fifth year of operation, Walmart’s Site-to-Store service allows customers to order tens of thousands of products, most of which are not available in stores, and have items shipped for free to a local Walmart store. Deliveries now arrive in approximately four to seven days versus the previous window of seven to 10 days.

FedEx Site-to-Store: Walmart’s FedEx Site-to-Store test program allows customers in select metro markets to order online and ship products free to a FedEx Office location, providing those that don’t live near a Walmart store access to Walmart savings at a convenient location.

Walmart Mobile: Through Walmart’s iPhone app and mobile web browser, customers can more easily shop on their terms. New to Walmart Mobile, customers can now refill Walmart Pharmacy prescriptions and order photo prints for pick up at a local store directly from their mobile web browser. Customers can also search and browse the full Walmart site.

Harry Potter: The Exhibition Comes to NYC

Harry Potter: The Exhibition is set to open in New York City at Discovery Times Square on April 5, 2011. The previously unscheduled stop in New York City will serve as the tour’s final North American destination before going international. Tickets are on sale now.

In partnership with Warner Bros. Consumer Products, Global Experience Specialists, Inc., (GES) created the 14,000-square-foot experiential exhibition, where visitors will be able to visit dramatic displays inspired by the Hogwarts film sets and see the craftsmanship behind authentic costumes and props from the films.

Spin Master Donates to Japan

In response to last week’s tragic earthquake and tsunami in Japan, Spin Master Ltd. has announced that it will be donating $100,000, which is being channeled through the Red Cross and Israel’s Forum for International Humanitarian Aid, IsraAID. These two organizations are working to provide first aid, emotional support, and relief items to those displaced and supporting the initiatives of the Japanese Red Cross.

“On behalf of the more than 1,000 employees of Spin Master we want to express how deeply saddened we are by the extensive damage and loss of life as result of last week’s earthquake and tsunami,” says Spin Master’s co-CEO and chairman Ronnen Harary. “We want to help in any way we can and hope our support will result in lives saved and families reunited.”

In addition, Spin Master has opened an employee disaster relief fund, with its offices around the world participating, to help support the current search and rescue initiatives.