(Reuters) – The world’s largest dedicated toy retailer Toys R Us Inc TOY.UL said on Wednesday it had acquired the FAO Schwarz brand for an undisclosed sum.
After the acquisition, Toys R Us will continue to operate the two FAO Schwarz retail stores in New York City and at the Caesars Palace in Las Vegas. Toys R Us said it will offer jobs to FAO Schwarz staff at both the New York and Las Vegas stores.
“We will work tirelessly to preserve the distinctiveness and integrity of the FAO Schwarz stores and brand as we grow the business,” Jerry Storch, chief executive of Toys R Us said in a statement.
The company said it will also operate the FAO Schwarz e-commerce and catalog operations.
All merchandising, management, distribution and marketing operations will immediately be taken over by Toys R Us.
FAO Schwarz, which has been in operation since 1862, describes itself as the oldest toy retailer in the United States.
Earlier this year Toys R Us, which operates 1500 stores in 33 countries worldwide, expanded its online brand with eToys.com, babyuniverse.com, Toys.com and parenting resource site, ePregnancy.com.
(Reporting by Yinka Adegoke; Editing by Anshuman Daga)
(peHUB note: Toys R Us is backed by Bain Capital, KKR, and Vornado Real Estate Trust.)