Alleghany Capital Corporation has announced that its subsidiary, Jazwares, has acquired a majority stake in Kelly Toys Holdings. Kellytoy is a manufacturer of everyday and seasonal plush toys, known principally for its Squishmallows brand.
Judd Zebersky, CEO and president of Jazwares, commented: “Kellytoy has established a strong position and a proven expertise in the plush toy market through a range of proprietary brands, including its best-selling Squishmallows line. In February 2019, we entered into a strategic partnership with Kellytoy to reinvigorate and expand distribution of Jazwares’ Russ Berrie brand, which we acquired in 2018. After working successfully together for over one year, we believe it is time to integrate and expand our partnership with Kellytoy, which will allow both companies to more fully leverage their strengths, positioning the combined entity as a leading supplier in the global plush market.”
Jonathan Kelly, co-president of Kellytoy, stated: “We are thrilled to be joining Jazwares and the Alleghany Capital family of companies. I have known and respected the management team at Jazwares for a long time and believe that after years of building the company, Kellytoy’s logical next stage of growth is through a partnership with a larger, yet very nimble, global platform such as Jazwares. We are confident that our combined talents and the synergies that will result from this transaction will benefit both companies.”
Udi Toledano, chairman of Alleghany Capital, commented: “Alleghany Capital takes a long-term view of the market and, despite recent macro-economic challenges, continues to see compelling opportunities to invest in the global toy industry. We believe that the combination of Jazwares’ unique operating capabilities and Alleghany Capital’s financial backing will allow Jazwares to continue to differentiate itself in the marketplace.”