NEW YORK, April 1, 2020 /PRNewswire/ -- Alleghany Capital
Corporation ("Alleghany Capital"), a wholly-owned subsidiary of
Alleghany Corporation, today announced that its subsidiary,
Jazwares, LLC ("Jazwares"), a leading toy and consumer products
company, has acquired a majority stake in Kelly Toys Holdings, LLC
and Kelly Amusement Holdings, LLC (formerly known as Kellytoy
Worldwide, Inc. and Kellytoy (USA), Inc.) (collectively, "Kellytoy").
Headquartered in Los Angeles,
California, Kellytoy is an award-winning manufacturer of
everyday and seasonal plush toys.
Judd Zebersky, Chief Executive
Officer 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
BerrieTM 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."
David Van Geyzel, President and
Chief Executive Officer of Alleghany Capital, added, "This
acquisition is representative of the development of Jazwares into a
leading toy industry platform where talented executives and their
teams are able to maintain their entrepreneurial mindset and
creativity, while leveraging the scale and relationships of a
global toy company with the long-term financial backing of
Alleghany Capital. We are excited about the opportunities
that will emerge from this transaction and are committed to
supporting Jazwares' and Kellytoy's employees both through this
difficult period in world history and in the recovery that will
follow."
Udi Toledano, Chairman of
Alleghany Capital, stated, "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 through Jazwares and its talented management team
led by Judd and Laura
Zebersky. 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."
Jonathan Kelly will serve as
Co-President of Kellytoy working alongside Laura Zebersky, Co-President of Kellytoy and
Chief Commercial Officer of Jazwares.
Ballard Spahr LLP acted as legal counsel to Jazwares.
Gibson, Dunn & Crutcher LLP acted as legal counsel to
Kellytoy.
About Alleghany Capital Corporation
Alleghany Capital Corporation owns and manages a diverse
portfolio of middle market businesses for its parent company,
Alleghany Corporation (NYSE:Y). Alleghany Capital's
industrial businesses include: (i) Precision Cutting Technologies,
Inc., a holding company focused on the machine tool and consumable
cutting tools sectors through Bourn & Koch, Inc., Diamond
Technology Innovations, Inc., CID Performance Tooling, and
Supermill LLC; (ii) R.C. Tway Company, LLC (dba Kentucky Trailer),
a manufacturer of custom trailers and truck bodies for several
niche end markets; (iii) WWSC Holdings, LLC, a structural steel
fabricator and erector for commercial, industrial, and
transportation infrastructure projects; and (iv) Wilbert Funeral
Services, Inc., a provider of products and services for the funeral
and cemetery industries and precast concrete markets.
Alleghany Capital's non-industrial businesses include: (i) Concord
Hospitality Enterprises Company, a hotel management and development
company; (ii) IPS-Integrated Project Services, LLC, a provider of
design, engineering, procurement, construction management, and
validation services for the pharmaceutical and biotechnology
industries; and (iii) Jazwares, LLC, a global toy, entertainment,
and musical instrument company. For additional information
about Alleghany Capital Corporation, please visit
www.alleghanycc.com.
About Jazwares, LLC
Jazwares, a subsidiary of Alleghany Capital Corporation, is a
global leader in consumer products including toys, plush, action
figures, collectibles and musical instruments. Jazwares'
portfolio includes a variety of dynamic licensed and wholly owned
brands. With over 20 years of design, development, and
manufacturing expertise, Jazwares is an award-winning company with
a progressive focus on identifying new trends and transforming them
into high-quality products for consumers of all ages.
Jazwares, which is headquartered in Sunrise, FL, has offices around the world and
sells in over 100 countries. Since its inception in 1997,
Jazwares continues to grow through the development of new products
and the strategic acquisitions of companies like First Act™, Russ
Berrie™, Zag Toys™, and Wicked Cool Toys™. For more
information about Jazwares, please visit www.jazwares.com.
About Kellytoy
Kellytoy manufactures a portfolio of award-winning everyday and
seasonal plush products that includes its best-selling
Squishmallows®, Kellybaby as well as a pet products line
called Wags & Purrs™. Over the past three decades,
Kellytoy has positioned itself to meet the needs of its customers
in mass market, gift/specialty/toy retailers, party and pet stores,
supermarkets, discount stores, drug stores, amusement parks and
even crane machines throughout the world. Kellytoy also makes
products in collaboration with leading classic characters,
including major licenses, as well as blockbuster theatrical
franchises. For more information about Kellytoy, please visit
www.kellytoy.com.
Forward-looking Statements
This release contains disclosures which are forward-looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include all
statements that do not relate solely to historical or current
facts, and can be identified by the use of words such as "may,"
"will," "expect," "project," "estimate," "anticipate," "plan,"
"believe," "potential," "should," "continue" or the negative
versions of those words or other comparable words. These
forward-looking statements are based upon Alleghany's current plans or expectations and
are subject to a number of uncertainties and risks that could
significantly affect current plans, anticipated actions and
Alleghany's future financial
condition and results. These statements are not guarantees of
future performance, and Alleghany
has no specific intention to update these statements. As a
consequence, current plans, anticipated actions and future
financial condition and results may differ from those expressed in
any forward-looking statements made by Alleghany or on Alleghany's behalf.
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SOURCE Alleghany Capital Corporation; Alleghany Corporation