Right Start to Acquire Zany Brainy Assets
Posted on August 17, 2001Zany Brainy, Inc., a specialty retailer of toys, games, books and multimedia products, has agreed to sell its assets to The Right Start Inc., a specialty retailer for developmental, educational and care products for infants and children through age 4. It is anticipated that Waterton Management LLC, the company's previously announced purchaser, will in lieu of purchasing Zany Brainy's assets directly invest $20 million in The Right Start.
Under the terms of the transaction, The Right Start will acquire substantially all of the assets of Zany Brainy, including approximately $115 million in cash, inventory and accounts receivable, in exchange for $11.7 million in cash, approximately $85 million in the assumption of liabilities, and the issuance of 1.1 million shares of The Right Start, Inc. common stock. Closing of the transaction is expected to occur prior to September 5, 2001.
``This agreement with The Right Start represents an incredible opportunity to expand our category leadership and benefit from multi-channel opportunities. It also presents great opportunities for sharing best practices and enhancing efficiencies while expanding each brand's reach exponentially,'' said Tom Vellios, President and CEO of Zany Brainy.
``We are very excited about the combination of Zany Brainy and The Right Start,'' added Jerry R. Welch, Chairman and Chief Executive Officer of The Right Start. ``The companies are the two most powerful kid's brands in America today and are a perfect complement to each other.''