Crown Crafts acquires Manhattan Toy for $17M

Crown Crafts announced that it has acquired Manhattan Group, LLC, doing business as Manhattan Toy, and its wholly owned subsidiary Manhattan Toy Europe. The acquisition expands Crown Crafts’ presence in the growing category of developmental toys for infants and toddlers. Manhattan Toy’s product offerings of plush, dolls and wooden toys will complement Crown Crafts’ existing line of Sassy toys. The purchase price for the acquisition is $17M and is subject to customary working capital adjustments. The purchase was funded by a combination of cash on hand and proceeds from the company’s line of credit. The term of the line of credit has been extended from July 2025 to July 2028 and its borrowing capacity increased from $26M to $35M. The acquisition is expected to be accretive to earnings and will add approximately $24M annually to the company’s net sales. Following the acquisition, the toy category will become the largest product category within the company’s business, representing approximately 40% of overall net sales.