Highly Acclaimed and Creative Cranium Brand to Join Hasbro's Powerful Games Portfolio
PAWTUCKET, R.I.--(BUSINESS WIRE)--Jan. 4, 2008--Hasbro, Inc.
(NYSE:HAS), the world's second-largest toy and game company, announced
today that it has entered into an agreement to acquire privately-held
Cranium, Inc., and its wide range of Cranium branded games and related
products. Hasbro will pay a base purchase price of $77.5 million,
which may be adjusted based on Cranium's net assets on the closing
date. The deal is expected to close during the 1st quarter of 2008.
"This acquisition is consistent with Hasbro's ongoing strategy to
bring to market the most innovative toy and game brands in the world,"
said Brian Goldner, Chief Operating Officer for Hasbro, Inc. "As the
global leader in games, Hasbro is in a unique position to maximize the
long-term potential of the Cranium brand, with real opportunity for
growth in international markets."
Cranium brands such as CRANIUM, CRANIUM HULLABALOO, CRANIUM CADOO,
CRANIUM CARIBOO, CRANIUM ZOOREKA, CRANIUM WHOONU and CRANIUM BALLOON
LAGOON will now join such timeless classics as MONOPOLY, CLUE,
SCRABBLE and TRIVIAL PURSUIT as part of Hasbro's games portfolio.
Hasbro's global games and puzzles net revenues in 2006 were
approximately $1.3 billion.
"A decade ago, we set out to create a brand that would give
everyone the chance to shine. 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," said Richard Tait,
Cranium Inc. co-founder and Grand Poo Bah. "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."
The parties have signed a Merger Agreement, pursuant to which a
newly-formed subsidiary of Hasbro will merge with Cranium, and Cranium
will thereby become a subsidiary of Hasbro. Closing of the merger is
subject to closing conditions, including the approval of Cranium's
shareholders and obtaining necessary consents. The purchase price paid
by Hasbro will be divided between repayment of Cranium's outstanding
debt and payments to Cranium's shareholders.
About Cranium, Inc.
Cranium, Inc. reinvented the board game category in 1998 with the
launch of Cranium and a pledge to give everybody the chance to shine.
Today, Cranium leads the industry in innovation through a constant
passion for changing the rules. Celebrated for its award-winning
products and culture, Cranium is recognized as one of Washington
State's Top 100 Privately Held Companies, and five-time winner of the
Toy Industry Association's T.O.T.Y. Game of the Year award. With more
than 22 million games, books, and toys sold worldwide, Cranium
continues to fuel a global movement of more than half a million
Craniacs in nearly 30 countries and more than 10 languages. From
Cranium games and puzzles to books and toys, everything we create
celebrates the full range of natural abilities as kids, families and
adults create, discover, perform and connect. For more information,
About Hasbro, Inc.
Hasbro (NYSE: HAS) is a worldwide leader in children's and family
leisure time entertainment products and services, including the
design, manufacture and marketing of games and toys ranging from
traditional to high-tech. Both internationally and in the U.S., its
PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER and WIZARDS
OF THE COAST brands and products provide the highest quality and most
recognizable play experiences in the world.
Certain statements contained in this release, including
expectations as to the time the transaction will close and as to
future product opportunities, are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to known and unknown risks
and uncertainties and actual events may differ from these
expectations. Specific factors which may cause such a difference
include, but are not limited, to delays in achievement of the closing
conditions for the transaction, either as a result of third party
actions or the actions of Hasbro or Cranium; the ability to design,
manufacture, source and ship new and continuing products following the
closing on a timely and cost-effective basis; and consumer interest in
and purchase of such products in quantities and at prices sufficient
to be profitable. Hasbro and Cranium undertake no obligation to make
any revisions to the forward-looking statements contained in this
release or to update them to reflect events or circumstances occurring
after the date of this release.
CONTACT: Hasbro Investor Relations
Karen Warren, 401-727-5401
Gary Serby, 401-727-5582
Heather Snavely, 206-931-5498
SOURCE: Hasbro, Inc.