SANTA MONICA, Calif.–(BUSINESS WIRE)–JAKKS Pacific, Inc. (NASDAQ: JAKK) today announced that the Company has
entered into an agreement with Hong Kong Meisheng Culture Company Ltd.
(“Meisheng”) to sell 3,660,891 million shares of the Company’s common
stock to Meisheng for a total purchase price of $19.3 million. The
transaction is subject to approval by the shareholders of Meisheng’s
parent company (Meisheng Culture & Creative Corp., Ltd.), and regulatory
filings in China by Meisheng.
Stephen Berman, JAKKS Chairman and Chief Executive Officer, stated: “As
a manufacturer of kids’ consumer products and toys, as well as a
producer of animated content, we appreciate the significant and broad
possible new opportunities the Chinese market represents. We are pleased
that Meisheng has made the investment decision to acquire an equity
stake in JAKKS. This should fortify our existing relationship as joint
venture partners in two jointly owned companies – one that distributes
JAKKS products in China and the other that develops new animation
content owned by JAKKS and Meisheng. We expect the expanded relationship
with Meisheng will put us in an advantageous position to realize greater
opportunities in China.
“We are also pleased to announce that upon closing of Meisheng’s share
purchase, Xiaoqiang Zhao, Executive Director of Hong Kong Meisheng
Culture Company Ltd. and Chairman of the Board of its parent company
Meisheng Culture & Creative Corp., Ltd., will join us as a member of
JAKKS Board of Directors. He will bring his experience and unique
insights to the Board including serving as Chair of a specially created
committee aimed at commercial development in the Greater China region,
and will be instrumental in helping us gain greater access to the
Chinese toy market.”
Xiaoqiang Zhao stated: “Meisheng Culture is one of the leading companies
in China’s IP industry through its own IP generation and partnerships
with other companies. We have been creating an IP operation and
transformational platform consisting of consumer products, games and
media, which centers on IP derivatives. We believe we have unique
advantages in the global IP industry, from creating, designing,
manufacturing to distribution and retail as well as other current and
future platforms. Investing in JAKKS is an important factor in our
global market strategy. We believe this investment will contribute to
Meisheng’s growth and impact in overseas markets. We are optimistic that
we will be able to help JAKKS expand its market share in Asia, and
especially in China. I have had a long-term relationship with Stephen
Berman and a great relationship with JAKKS for more than a decade. Asia
is an attractive market with lots of consumers with strong buying power.
Together with JAKKS, we look forward to bringing a better experience to
consumers in Asia.
“I am honored to be elected as a new member of JAKKS’ Board of
Directors. I look forward to bringing my decades of experience in
consumer goods to the Board and to further support JAKKS’ growth along
with the other members of the Board.”
Meisheng announced in February 2017 that it acquired 1,387,647 shares of
the Company’s common stock in open market transactions. In addition to
the joint venture companies established by Meisheng and JAKKS, Meisheng
Culture & Creative Corp., Ltd. has for many years been a manufacturer
for the Company.
About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. (NASDAQ: JAKK) is a leading designer, manufacturer
and marketer of toys and consumer products sold throughout the world,
with its headquarters in Santa Monica, California. JAKKS Pacific’s
popular proprietary brands include BIG-FIGS™, XPV®, Max Tow™ and
Friends, Disguise®, Moose Mountain®, Funnoodle®, Maui®, Kids Only!®; a
wide range of entertainment-inspired products featuring premier licensed
properties; and C’est Moi™, a skincare and performance make-up brand.
Through JAKKS Cares, the company’s commitment to philanthropy, JAKKS is
helping to make a positive impact on the lives of children. Visit us at www.jakks.com and
follow us on Instagram (@jakkstoys),
and Facebook (JAKKS
© 2017 JAKKS Pacific, Inc. All rights reserved.
Forward Looking Statements
This press release may contain “forward-looking statements” (within the
meaning of the Private Securities Litigation Reform Act of 1995) that
are based on current expectations, estimates and projections about JAKKS
Pacific’s business based partly on assumptions made by its management.
These statements are not guarantees of future performance and involve
risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what
is expressed or forecasted in such statements due to numerous factors,
including, but not limited to, those described above, changes in demand
for JAKKS’ products, product mix, the timing of customer orders and
deliveries, the impact of competitive products and pricing, and
difficulties with integrating acquired businesses. The “forward-looking
statements” contained herein speak only as of the date on which they are
made, and JAKKS undertakes no obligation to update any of them to
reflect events or circumstances after the date of this release.