PAWTUCKET – Hasbro Inc. (NYSE: HAS) today announced an agreement to acquire privately held game-creator Cranium Inc. for about $77.5 million. The price may be adjusted later, based on Cranium’s net assets on the closing date, Hasbro said.
“This acquisition is consistent with Hasbro’s ongoing strategy to bring to market the most innovative toy and game brands in the world,” Brian Goldner, Hasbro’s chief operating officer, said in a statement this morning.
The deal includes the Seattle-based company’s games – Cranium, Cranium Hullabaloo, Cranium Cadoo, Cranium Cariboo, Cranium Zooreka, Cranium Whoonu and Cranium Balloon Lagoon – and related products, which will join such classics as Monopoly, Clue, Scrabble and Trivial Pursuit in the Hasbro portfolio.
“A decade ago, we set out to create a brand that would give everyone the chance to shine,” said Richard Tait, co-founder and Grand Poo Bah of Cranium Inc. “We’ve accomplished that and so much more, making history with great products that have won five Toy Industry Association Game of the Year awards.
“Now, the next chapter in Cranium’s story begins. The Cranium brand will benefit from the expertise and global presence of an industry leader, Hasbro, who is as passionate about games as we are.”
Since its founding, Cranium has sold more than 22 million games, books and toys. Its products are available in more than 10 languages and 30 countries.
“Hasbro is in a unique position to maximize the long-term potential of the Cranium brand,” especially in international markets, Goldner said. Hasbro sold about $1.3 billion in games and puzzles worldwide in 2006, the latest year for which full data are available.
The agreement calls for Cranium to become a Hasbro subsidiary, by merging with a newly-formed Hasbro subsidiary. The money paid by Hasbro would be divided between repayment of Cranium’s outstanding debt and payments to the game company’s shareholders.
The transaction – subject to the approval of Cranium shareholders and other customary conditions – is expected to close sometime in the first quarter.
Hasbro Inc. (NYSE: HAS) – the world’s second-largest toymaker – designs, manufactures and markets games and toys under brands including Playskool, Tonka, Milton Bradley, Parker Brothers, Tiger and Wizards of the Coast. Additional information is available at www.hasbro.com. Information about Cranium Inc. is available at www.cranium.com.
