SYDNEY: Toys“R”Us ANZ Limited (ASX:TOY) has announced the acquisition of assets from the established arts and crafts retailer RIOT, alongside securing up to $5 million in funding from a US investment fund managed by C/M Capital Partners, LP. This acquisition marks a significant expansion for TOY, enhancing its e-commerce presence and diversifying its product offerings.
The deal involves a mix of cash and TOY stock, pending shareholder approval, and brings RIOT’s high-margin arts and crafts products under TOY’s growing House-of-Brands. CEO Penny Cox expressed excitement over the acquisition, citing RIOT’s strong brand, loyal customer base, and alignment with TOY’s growth strategy.
The acquisition promises brand synergy, profitable product categories, customer and wholesale expansion, and operational efficiencies. TOY aims to integrate RIOT’s operations into its existing infrastructure to achieve economies of scale and bolster its position in the online retail sector. Additionally, TOY has secured an initial investment tranche from Mercer Street Global Opportunity Fund II LP, further strengthening its financial standing.