Funtastic Limited’s Acquisition Of Rights To Toys R Us And Babies R Us

Johnson Winter & Slattery has advised ASX listed Funtastic Limited on the deal.

Funtastic acquired the Hobby Warehouse Group (HWG), the licensor of the Toys R Us and Babies R Us brands in Australia.

The transaction will give Funtastic access to the HWG’s logistics and distribution channels, including an e-commerce platform which has one of the largest ranges of baby, toy and hobby products in Australia. It also signals the re-opening of Toys R Us and Babies R Us bricks-and-mortar stores across Australia.

The transaction involved the acquisition of HWG for share consideration representing 34.43% of the issued capital of Funtastic valued at approximately $32.6 million, a re-capitalisation through a $29 million placement (fully underwritten by Canaccord Genuity (Australia) Limited) and a conversion of $6 million of Funtastic’s existing debt to equity.

Funtastic obtained shareholder approval to give effect to the transaction at its AGM on 23 November 2020 and completed the acquisition, placement and debt conversion on 26 November 2020.

The Johnson Winter & Slattery team was led by Byron Koster (Picture – Consultant), along with Donald Hacker (Special Counsel), Kate Gardner (Senior Associate) and Jemma Potezny (Associate).

Involved fees earner: Kate Gardner – Johnson Winter & Slattery; Donald Hacker – Johnson Winter & Slattery; Byron Koster – Johnson Winter & Slattery; Jemma Potezny – Johnson Winter & Slattery;

Law Firms: Johnson Winter & Slattery;

Clients: Funtastic Limited;

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Author: Michael Patrini