The Bridge Direct, a well-respected marketer of children’s consumer products, has entered into an agreement to merge with Toronto-based Tech 4 Kids. The company plans to use this opportunity to accelerate a roll up strategy, working closely with its merger and acquisition advisors and banking partners. The new company will target their products to a diverse group of mass market and specialty retailers around the world.
“It is no secret that industry stakeholders are looking to do more business with fewer and stronger partners. This makes it harder for smaller companies to stay relevant and competitive,” Jay Foreman, CEO of The Bridge, said in a statement. “Challenges facing the industry are compounded by the additional costs and complexities associated with meeting the increasingly high safety standards required by regulators, retailers and licensors. As a result, many industry business owners are looking for a way to scale up, reduce their risk or simply cash out.”
“It is our expectation to acquire or merge with new businesses every twelve to eighteen months. Our strategy is designed to offer these owners a convenient solution with access to global markets,” Brad Pedersen President and CEO of Tech 4 Kids said in a statement. “This move will provide a unique platform that will position us amongst the top tier of toy manufacturers in North America and provide the growth plan to reinforce our position as a key industry player.”
The new company will begin to show product lines at the Fall Toy Preview in Dallas in October. The head office will be located in Boca Raton, Fla., and offices will continue to be maintained in Toronto and Hong Kong.