Johnson Winter & Slattery has advised ASX listed Funtastic Limited (Funtastic) on its acquisition of the Hobby Warehouse Group (HWG), the licensee of the Toys R Us and Babies R Us brands in Australia.
The transaction will give Funtastic access to the HWG’s logistics and distribution channels, including an e-commerce platform which has one of the largest ranges of baby, toy and hobby products in Australia. It also signals the re-opening of Toys R Us and Babies R Us bricks-and-mortar stores across Australia.
The transaction involved the acquisition of HWG for share consideration representing 34.43% of the issued capital of Funtastic valued at approximately $32.6 million, a re-capitalisation through a $29 million placement (fully underwritten by Canaccord Genuity (Australia) Limited) and a conversion of $6 million of Funtastic’s existing debt to equity.
Funtastic obtained shareholder approval to give effect to the transaction at its AGM on 23 November 2020 and completed the acquisition, placement and debt conversion on 26 November 2020.
Johnson Winter & Slattery advised on all aspects of the transaction, including negotiating the terms of the acquisition, implementing the capital raising and procuring various shareholder approvals to give effect to the transaction.
The Johnson Winter & Slattery team was led by Byron Koster (Consultant), along with Donald Hacker (Special Counsel), Kate Gardner (Senior Associate) and Jemma Potezny (Associate).
Byron Koster said the firm was proud to have supported Funtastic on this strategic transaction.
“Given the challenges 2020 has thrown at the retail sector it is positive to see that growth is on the horizon. Funtastic is well positioned to take advantage of Toys R Us’ strong brand in Australia and the opportunity to grow its e-commerce business.”
About Johnson Winter & Slattery
Johnson Winter & Slattery is an independent national Australian law firm with over 65 partners and offices across Australia. We advise major Australian and international corporations and investment funds on their most challenging transactions and disputes across Australia and surrounding regions. Working closely with clients, knowing their business, and appreciating their commercial objectives, we tailor our approach to deliver cost-effective commercial outcomes.
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