Falcon Investment Advisors invests in Basic Fun!


Falcon Investment Advisors has invested in Basic Fun!. Financial terms weren’t announced. Basic Fun!, of Boca Raton, Florida, is a toy and novelties company.

PRESS RELEASE

BOCA RATON, Fla.–(BUSINESS WIRE)–Basic Fun!, the Florida-based toy and novelties company, announced that it has received a significant equity investment from Falcon Investment Advisors, LLC, the Boston-based investment fund.

Basic Fun!’s strategic goal is to be the next great American toy story by growing organically, as well as by acquiring and consolidating smaller toy companies in the wake of the ever-changing retail marketplace for toys in North America and globally. Following the merger of The Bridge Direct and Tech 4 Kids, which formed the new Basic Fun!, the company’s progression has continued with the acquisition of two STEM-focused companies, Uncle Milton and Geoworld in 2017, as well as the acquisition of construction toy icon K’NEX in early 2018.
The company believes the investment from Falcon is a clear indication of the confidence the financial community has in Basic Fun!’s business model and its management team as the company scales up with the goal of emerging into the top 10 of global toy companies over the next several years.
“We couldn’t be more pleased than to have the support of the Falcon team,” said Jay Foreman, CEO of Basic Fun! “We have gotten to know Falcon over the past year and believe the team’s knowledge and expertise will help accelerate and finance our growth and acquisition plans.”
The company also has the support of The Royal Bank of Canada, which put in place the financing package to fund the merger with Tech 4 Kids and the acquisitions of Uncle Milton and Geoworld, and Cathay Capital Private Equity, which joined the Basic Fun! investor group earlier this year through its prior ownership of K’NEX.
“While our private equity partners hold minority stakes in our business, they along with RBC will play a major role in our future growth,” said Foreman. BMO Capital Markets originated the investment from Falcon Investment Advisors, LLC and served as the exclusive financial advisor to Basic Fun! on the transaction.
“Together with our financial partners, the Company is poised for dynamic growth and is extremely well positioned to navigate through, grow and thrive in today’s evolving retail landscape,” said John MacDonald, the company’s Chairman.
About Basic Fun!
Basic Fun! is a developer of innovative and fun children’s entertainment products. The company was created as a result of an organized roll-up strategy, of several smaller toy companies including: The Bridge Direct, Tech 4 Kids, K’NEX, Uncle Milton and Good Stuff. The company’s products are sold through a well-established network of retailers and distributors around the globe and include the following product lines: CakePop Cuties, Cutetitos, Classic My Little Pony, Mash’ems, Uncle Milton’s Star Wars Science activities and Original Ant Farm, C3 Collector Construction, Arcade Classics Electronic Games including Pac-Man and Frogger, Pokémon Trainer Guess, Fisher-Price Classics®, Strawberry Shortcake, Lite-Brite® and many more. For more information, visit www.BasicFun.com.
About Falcon Investment Advisors, LLC
With offices in Boston and New York, Falcon provides innovative capital solutions in amounts of $25 million to $75 million to middle market companies. Since its founding in 2000, Falcon has invested in over 90 companies in a broad range of industries to support acquisitions, recapitalizations, buyouts and organic growth. Falcon has significant capital available for investment, through both its credit opportunities and structured equity funds. To learn more about Falcon, please visit www.falconinvestments.com.
About Cathay Capital
Cathay Capital is a global private equity firm specialized in the field of cross-border investment, committed to supporting the international expansion of middle-market companies in North America, China and Europe. With over 70 professionals and more than $2.0 billion in assets under management, Cathay Capital invests in middle-market companies in the consumer goods and services, healthcare, business services and technology industries. To learn more about Cathay Capital, please visit www.cathay.fr.
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 84,000+ employees who bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 16 million clients in Canada, the U.S. and 34 other countries. Learn more at rbc.com.
About BMO Capital Markets
BMO Capital Markets is a leading, full-service North American-based financial services provider, with approximately 2,500 professionals in 30 locations around the world, including 16 offices in North America, offering corporate, institutional and government client’s access to a complete range of investment and corporate banking products and services. BMO Capital Markets is a member of BMO Financial Group (NYSE, TSX: BMO), one of the largest diversified financial services providers in North America with US$589 billion total assets and over 45,000 employees as at July 31, 2018.

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