Spin Master Continues Acquisitions With Orbeez Deal

Dec. 16, 2019 5:21 PM ETSpin Master Corp. (SNMSF), TOY:CAHAS, JAKK, MAT


  • Spin Master announced that it has acquired the Orbeez brand from Maya Toys.
  • Orbeez toys are small seeds that grow into a round form when water is added.
  • SNMSF continues to be an active acquirer of brands as it seeks to obtain deeper penetration within its target segments.
  • The stock appears richly valued at its current level, as do other toy marketers, so my bias is NEUTRAL.
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Quick Take

Spin Master (OTCPK:SNMSF) announced it has acquired Orbeez for an undisclosed amount.

Orbeez, developed by Maya Toys, operates as an activity toys brand.

SNMSF continues to acquire brands as it seeks deeper penetration in its target markets, but the stock appears richly valued at its current level, so my bias is NEUTRAL.

Target Brand

Huntington Beach, California-based Maya Toys founded in 1992, which developed the Orbeez brand of superabsorbent polymers that grow 100 times in water, and operates as a toy company. Source: Maya Toys

Spin Master is acquiring the Orbeez brand from Maya Toys.

Orbeez's primary offerings include:

  • Ultimate Soothing Spa

  • Spin and Soothe Hand Spa

  • Super Sweet Shoppe

  • Wowzer Surprise

  • Orbeez Squeezables

  • Massaging Body Spa

  • Sweet Treats Studio

Market & Competition

According to a market research report by Grand View Research, the toys and games market was valued at $101.5 billion in 2018 and is projected to reach $139.2 billion by 2025.

This represents a forecast CAGR of 4.6% between 2019 and 2025.

The main drivers for this expected growth are the commercialization of movies and cartoon characters, as well as an increase in consumer disposable income.

The Asia Pacific region held the largest market share in 2018 and is anticipated to grow at an annual rate of 5.1% over the forecast period.

Major vendors that manufacture toys include:

  • Lego

  • Mattel (MAT)

  • Namco Bandai (TYO:7832)

  • Hasbro (HAS)

  • JAKKS Pacific (JAKK)

Source: Sentieo

Acquisition Terms and Financial

Spin Master didn't disclose the acquisition price and terms and didn't provide a change in financial guidance, so the deal was likely for a financially non-material amount.

A review of the firm's most recent published financial results indicates that, as of September 30, 2019, Spin Master had $151.4 million in cash and equivalents and $590.3 million in total liabilities and no long-term debt.

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This article was written by

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