Introduction

We are pleased to share with you a summary update of market valuations and activities in the Global Toys and Games industry based on the year 2019.

Toys and Games is one the key sectors in which Armor specializes and closely follows market trends. Please contact us for a further discussion.

Valuations of public companies have increased in recent years. Median EBITDA was 9.7x by the end of 2019 vs. 7.7x in Q4-2015.

Key highlights from the above table are that margins have recovered over 2018-2019 from the drop in 2017. Over the same period, leverage of the industry constituents have slightly decreased over the last 24 months.

The number of transactions announced per year amounted 14 to 23 over the past 5 years. In the second quarter of 2019, two transactions in Spain (see below) and US drove the most of the total transaction value for the year.

Armor selected the largest M&A transactions across the globe in 2019 for which information on Implied Enterprise Value was available.