On January 2, 2024, Spin Master Corp., a global leader in children's entertainment, completed its acquisition of U.S.-based Melissa & Doug, a respected brand in early childhood play, for $1.2 billion (US$950 million). Melissa & Doug is renowned for its sustainable wooden toys and screen-free play options, popular among both parents and children.

Max Rangel, Spin Master's Global President and CEO, stated that this acquisition unites two industry leaders, enhancing their ability to create enchanting play experiences and inspire children globally. The addition of Melissa & Doug's product line to Spin Master's portfolio marks a significant expansion in early childhood play, reinforcing Spin Master's industry leadership. This merger is expected to drive growth in various channels and markets worldwide, thanks to the combined expertise and diverse, high-quality toy offerings.

The deal broadens Spin Master's presence in specialty retail and e-commerce, contributing a stable, evergreen product range with a varied revenue base, and promising significant long-term growth. The parties also agreed to eliminate a previously announced contingent earnout of up to $150 million.

Evercore, TD Securities and RBC Capital Markets served as financial advisors to Spin Master. HSBC Bank, TD Bank and Royal Bank of Canada as Joint Lead Arrangers provided debt financing specific to funding the Acquisition, supplemental to the company's Credit Facility.

Spin Master was represented in-house by Christopher Harrs, Executive Vice President, General Counsel and Corporate Secretary; Alison Desipio, Associate General Counsel and Assistant Corporate Secretary; and Tiffany Chiu, Associate Counsel.

Torkin Manes LLP acted as Canadian counsel to Spin Master, with a team led by Jeffrey Cohen and Glen Eddie, and including Adrian Myers, Yale Hertzman, Taryn Meyer, Sam Laskey and Jamie Aylward (Corporate/M&A).

Blake, Cassels & Graydon LLP provided Canadian financing and securities advice to Spin Master, with a team consisting of Matt Merkley (Securities) and Alexis Levine, Chris Wong and Lauren Kinsmill (Financing).

Pillsbury Winthrop Shaw Pittman LLP served as US counsel to Spin Master, with a team led by Jonathan Russo, and including Veronica Nunn, Nina Bakhtina and Harriet McCartin.

Harris Williams & Co acted as financial advisor to Melissa & Doug. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel for AEA as Equityholder Representative and Company, with a team led by Steven Steinman, and including Adam Cohen and Hannah Koban.