JAKKS Pacific Buys Disguise Inc.

César SA has sold its Halloween costume and décor unit, Disguise Inc., and a related Hong Kong entity to JAKKS Pacific Inc. (Nasdaq: JAKK) for $28.3 million. César is a portfolio company of France-based Butler Capital Partners.



JAKKS Pacific, Inc. (NASDAQ:JAKK) has completed the acquisition of substantially all of the assets and liabilities of leading Halloween costume and décor company, Disguise, Inc., and a related Hong Kong company, both subsidiaries of France-based César S.A.


San Diego-based Disguise is a 21-year-old leading manufacturer of Halloween costumes and accessories, with an expansive and innovative line based on hundreds of new and classic favorites for all ages. Disguise’s portfolio includes non-licensed Halloween costumes based on everything from horror, pirates, historical figures and aliens to animals, vampires, angels and more, as well as popular licensed characters from top intellectual property owners including Disney, Marvel, Mattel, Hasbro and Sesame Street, among others.


“We have been watching Disguise for years and are very pleased to further diversify our portfolio with this newest addition to the JAKKS Pacific family of brands,” said Stephen Berman, President and COO of JAKKS. “We expect to maximize opportunities provided by Disguise and take advantage of synergies across multiple JAKKS divisions. We look forward to expanding our existing role-play and dress-up business, while firmly positioning JAKKS in the Halloween industry.”


Consideration for the acquisition included cash in the amount of $28.3 million paid at closing and the payment of license transfer fees and assumption of liabilities in the amount of $27.6 million. BNP Paribas acted as financial advisors to JAKKS Pacific in this transaction.


For the trailing 12 months ending September 30, 2008, net sales for Disguise were $106.5 million with EBITDA of $13.1 million.


For more information about Disguise, visit www.disguise.com.


About Disguise


Since its inception in 1987 with only twelve designs, Disguise has established itself as the leading fashion-driven design company in the global costume industry creating the hottest styles for both everyday costume play and Halloween. In 1997, Disguise joined the César Group, an international costume and playwear group founded in France in 1842. It then became the largest costume and dress up manufacturing group in the world. The synergy of creative and international presence of both companies has produced facilities in ten countries and distribution in more than sixty. Disguise partners with leading studios, such as Disney, Marvel, Mattel, Hasbro and Sesame Workshop, and leading retailers to bring over ten million costumes to the American market each year.


About JAKKS Pacific, Inc.


JAKKS Pacific, Inc. (NASDAQ:JAKK) is a leading designer and marketer of toys and consumer products, with a wide range of products that feature some of the most popular children’s toy licenses in the world. JAKKS’ diverse portfolio includes Action Figures, Art Activity Kits, Stationery, Writing Instruments, Performance Kites, Water Toys, Sports Activity Toys, Vehicles, Infant/Pre-School, Plush, Construction Toys, Electronics, Dolls, Dress-Up, Role Play, and Pet Toys and Accessories, sold under various proprietary brands including JAKKS Pacific®, Play Along®, Flying Colors®, Creative Designs International™, Road Champs®, Child Guidance®, Pentech®, Funnoodle®, Go Fly a Kite®, Color Workshop®, JAKKS Pets™, EyeClops®, Plug It In & Play TV Games™, Kids Only® and Tollytots®. JAKKS is an award-winning licensee of several hundred nationally and internationally known trademarks including Disney, Nickelodeon, Warner Bros., World Wrestling Entertainment, Ultimate Fighting Championship, Graco and Cabbage Patch Kids. JAKKS and THQ Inc. participate in a joint venture that has worldwide rights to publish and market World Wrestling Entertainment video games. For further information, visit www.jakks.com.