New York – January 2, 2024 – AEA Investors’ (“AEA” or the “Firm”) Middle Market Private Equity team announced today that its fund has completed the sale of Melissa & Doug (“M&D” or the “Company”) to Spin Master Corp. (TSX:TOY) (“Spin Master”). Melissa & Doug is a leading cross-category provider of branded specialty toys across the independent, big-box and e-Commerce retail channels, known for its authentic, true-to-mission brand. The addition of Melissa & Doug will strengthen Spin Master’s offering by adding complementary early childhood products and further diversify its portfolio across new channels and formats.
Over the course of AEA’s investment period, the Firm worked closely with management to create value by growing the penetration of major brick-and-mortar customers like Walmart, building out the e-Commerce channel with the launch of a direct-to-consumer platform, expanding into new product categories and vastly enhancing the gross margin profile through improvements to sourcing and distribution. These initiatives enabled M&D to drive strong organic growth and increased profitability while enhancing its reputation as a beloved specialty toy brand with category-leading consumer affinity, which AEA believes was highly attractive to a strategic acquirer.
About AEA
AEA Investors LP was founded in 1968 by the Rockefeller, Mellon and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA has an extraordinary global network built over many years which includes leading industrial families, business executives and leaders; many of whom invest with AEA as active individual investors and/or join its portfolio company boards or act in other advisory roles. Today, AEA’s approximately 120 investment professionals operate globally with offices in New York, Stamford, San Francisco, London, Munich and Shanghai. The Firm manages funds that have approximately $19 billion of invested and committed capital including the leveraged buyouts of middle market companies and small business companies, growth capital and debt investments.
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