Basic Fun Buys K'NEX
Boca Raton, FL-based toy and novelty company Basic Fun! has purchased the assets of K'NEX, the Hatfield, PA-based construction toy brand. Media reports pegged the purchase price at $21 million.
"We are very pleased to be adding this incredible iconic toy brand into our platform," said Jay Foreman, Basic Fun!'s chief executive officer. "The K'NEX story is a great American toy story in every way — from its inception as a toy invention, to its unique manufacturing profile, to being recognized by consumers and the trade as a distinctive construction platform in one of the most challenging categories in the toy industry."
Launched in 1992, K'NEX was invented by company co-founder Joel Glickman "and our family has been operating this business for over 25 years," said Michael Araten, current CEO. "It's time for us to connect this wonderful brand and its innovative product line with new owners who we expect will take K'NEX to new heights over the next 25 years." CGT identified K'NEX as a "Standout SMB" in 2011.
Basic Fun! will continue to manufacture K'NEX rods and connectors at an eco-friendly manufacturing facility in Pennsylvania under a long-term agreement with The Rodon Group [which is owned by the Glickman family] and will retain the K'NEX office and distribution center in Hatfield.
Basic Fun! was formed through the organized roll-up of several smaller toy companies: The Bridge Direct, Tech 4 Kids, Uncle Milton and Good Stuff. The company's products are sold through a well-established network of retailers and distributors around the globe. Key brands include Good Stuff, Tech 4 Kids and Uncle Milton.