Jakks Pacific Buys Trendmasters’ Assets

Jakks Pacific Inc., the Malibu-based maker of World Wrestling Entertainment figures and Pentech pens, said Tuesday that it had acquired the water guns, play sets and other assets of privately held Trendmasters toys.

Terms of the deal were not disclosed. Toy industry experts, however, said the financially troubled Trendmasters had a number of suitors and probably sold for about $25 million.

Jakks’ latest purchase comes just a few months after it finalized the acquisition of Toymax International, the creator of Go Fly a Kite and Funnoodle products, which vaulted Jakks to the toy industry’s No. 3 spot, behind Mattel Inc. and Hasbro Inc.

Sean McGowan, a toy industry analyst for Gerard Klauer Mattison in New York, said that even without knowing the terms of the deal, he believed the purchase was probably a good one for Jakks.

“They’re buying a couple products that are out there already, getting into categories they’re not already in, and they’re probably not paying a lot,” McGowan said.

Part of the company’s strategy has been to offer more products that sell before the holiday season. Many toy makers rely on Christmas sales for more than half their yearly revenues.

To that end, Jakks’ recent acquisitions have included Pentech pens and stationery, which are big sellers in the fall back-to-school period, and Toymax, a maker of kites and pool floats that sell well in the summer.

With Trendmasters, Jakks builds on its summer and sports businesses, adding that company’s Storm line of Nerf-like foam balls and water guns, which feature colored lights that give the shooting water different hues.

And like many of Jakks’ strongest sellers, most of these products sell for under $15, which Jakks executives say has been an important part of their toys’ appeal.

“A lot of the parts fit very well with our company, and they are a well-known brand with retailers,” said Stephen Berman, Jakks’ president and co-founder.

“Many retailers called us [Tuesday] and complimented us on getting the deal done,” Berman said.

Berman said Jakks’ cash position remained strong. The company raised more than $100 million last spring, in part to finance the Toymax deal. Berman said Jakks also had an untapped bank line of $50 million available and less than $100,000 in debt.

Jakks stock rose 45 cents to $16.50 on Nasdaq.