POOF-Slinky

Situation

POOF-Slinky, Inc. (the “Company”), headquartered in Plymouth, Michigan, is one of the oldest and most widely recognized branded toy companies in the world. Best known for its classic metal Slinky and POOF foam balls, the Company’s products are sold in more than 35,000 retail outlets.

Primarily through a series of acquisitions, POOF-Slinky established a comprehensive line of durable, popular and affordable children’s toys under a variety of iconic brand names.

Most recently, the Company bolstered its product offerings with the 2011 acquisition of the Fuzzoodles and Scientific Explorer product lines.

The Company’s shareholders, 85% of which were comprised of one family, sought wealth diversification and a gradual reduction in their daily responsibilities.

Solution

The Company engaged Amherst Partners (“Amherst”) to lead a process that would maximize value and identify a partner with the expertise and resources to continue building upon the Company’s legacy by enhancing its iconic brands, expanding its U.S. manufacturing capacity, and strategic acquisitions.

Results

Amherst received multiple indications of interest at competitive valuations. One of the potential partners, Propel Equity Partners (”Propel”), decided to intervene with a pre-emptive offer. Propel’s offer was successfully negotiated, leading to an efficient and expeditious closing.

Propel, a private equity firm specializing in branded consumer products companies, plans to leverage the Fortune 1000 marketing and operational expertise of its principals through its investment in POOF-Slinky, a new platform investment in the toy and games product segment.

The transaction, which exceeded value expectations, provided shareholders with liquidity along with the opportunity to continue to grow the Company as integral members of the new management team.