Toys“R”Us sells Chill Factor business to Character Promotions for $1.31 million

SYDNEY, AUSTRALIA:  Toys“R”Us ANZ Limited (ASX: TOY) announced the sale of its Chill Factor business to Character Promotions Limited, a UK based toy manufacturer and distributor.

The sale continues the strategic intent and transformation of the Company through an ongoing overhaul of product portfolios, including an increased focus on its e-commerce businesses Toys“R”Us, Babies“R”Us and Hobby Warehouse.

Key points and the financial impact of the transaction are as follows:

 Acquirer: Character Promotions Limited, a subsidiary of The Character Group PLC (AIM: CCT.L).

 Sale Price: US$1.31m (approximately AU$1.74m) comprising the Chill Factor business including 100% shares of Chill Factor Global Pty Ltd, patents, trademarks, registered domain names and other intellectual property.

 Business Description: Chill Factor squeeze cup slushy maker is a specially made cup, first released in 2013, designed to help turn liquid to ice in seconds.

 Revenue for the Chill Factor Business for the half year ended 31 January 2021 was approximately AU$0.44m which represents approximately 2.7% of the Toys“R”Us ANZ Group Total Revenue for the same period.

 Net Assets of the Chill Factor business as of 31 January 2021 amounted to AU$0.09m which represents 0.13% of the Toys“R”Us ANZ Group Total Assets as of that date.

Dr Louis Mittoni, CEO and Managing Director of Toys“R”Us ANZ Group, said: “The sale of the Chill Factor business supports the transition of the Group’s parent company away from toy wholesaling toward a digital-first direct-to-shopper retailer focus. Upon completion of the transformation, we look forward to executing our vision to build a world-class baby, toy and hobby e-commerce business.”

It is expected that the sale will be finalised prior to the end of the financial year on 31 July 2021.

The Company still owns the iconic brand Floaties® and plush toy brand Pillow Pets® and their associated intellectual property.

Toys“R”Us ANZ Limited (ASX: TOY) is an Australian based listed company with a mission to enrich the lives of people by encouraging exploration, creativity and living life more fully through the enjoyment of toys and hobbies.

 In addition to distributing leading products throughout Australia for key partners via its trading business Funtastic, the company recently acquired 100% of the Hobby Warehouse Group in November 2020, including Australian e-commerce websites Toys“R”Us, Babies“R”Us and Hobby Warehouse and the distribution business Mittoni Pty Ltd. The Company changed its name from Funtastic Limited to Toys“R”Us ANZ Limited on the 24 June 2021.

About the author

Leave a Reply

Your email address will not be published. Required fields are marked *