Brainytoys acquires HK, US toy companies for $4m

O'Connor-based toy developer Brainytoys Ltd has acquired US-based manufacturer and distributor Reveal Entertainment Inc and Hong-Kong-based toy vendor and distributor Enertec Enterprises Ltd in a cash and scrip deal worth $4 million.

Brainytoys said in an announcement that the acquisitions were expected to earn $1.4 million for the calendar year 2008, which would be bolstered through the sale of Brainytoys products through their existing sales platforms.

Company managing director Alex Aguero said the acquisitions would increase Brainytoys product count to around 300 products, from board games and plush toys to electronic products.

"These acquisitiong give Brainytoys a substantial integrated operational, logistics and sales base and significantly enhance its reach to customers world-wide," he said.