Hasbro and Cartamundi Sign a Letter of Intent.
PAWTUCKET, R.I. & TURNHOUT, Belgium–(BUSINESS WIRE)–Hasbro, Inc. (NASDAQ: HAS) and Cartamundi Group announced earlier this week the signing of a letter of intent to sell Hasbro’s manufacturing locations in East Longmeadow, Massachusetts and Waterford, Ireland to the Cartamundi Group. Cartamundi is a worldwide leader in the production and sales of playing cards and cards for games. Under the terms of the agreement, Cartamundi will continue to employ all regular manufacturing and distribution employees located in East Longmeadow and Waterford on comparable terms.
“We will continue to focus on global brand building, driven by great storytelling and innovation”
The divestiture is in line with Hasbro’s mission of Creating the World’s Best Play Experiences and building larger more global brands. Hasbro will continue to invest resources in areas that will maximize the value of the company’s brands globally, including in design, development, storytelling, sales and marketing. The sale of these facilities will have no impact to Hasbro’s commitment to the Games category and the company will continue to invest in gaming.
“We will continue to focus on global brand building, driven by great storytelling and innovation,” said Duncan Billing, Executive Vice President, Chief Global Operations and Business Development Officer. “Cartamundi not only has a deep legacy in manufacturing but shares similar values with Hasbro. They have a strong commitment to the community and its people and it was imperative for us to find the right owners for these sites. In addition to continuing to manufacture Hasbro board games, the factories will now be available to Cartamundi’s other customers, thus driving additional volume and supporting future growth. We want to recognize the employees in East Longmeadow and Waterford for their incredible contributions in building these world-class facilities, which should continue to be competitive well into the future.”
The proposed transaction includes all buildings, land, and equipment located at both sites. The East Longmeadow plant consists of approximately 1,150,000 square feet and supported by more than 350 full-time employees. The Waterford plant consists of approximately 244,000 square feet and is supported by more than 160 full-time employees.
The acquisition is in line with Cartamundi’s mission to become the pre-eminent manufacturer of playing cards, game cards and board games globally. Moreover, it reinforces the company’s purpose to share the magic of playing together.
“We are very pleased to have signed a letter of intent with Hasbro for the acquisition of these state-of-the-art facilities. We consider this to be a milestone in the history of our company,” said Chris Van Doorslaer, Chief Executive Officer, Cartamundi. “Through this acquisition we will become the world market leader in the manufacturing of board games. Our expanded capabilities in board game manufacturing further our mission to create game products and experiences that connect families and friends of every generation. We welcome Hasbro’s highly dedicated and experienced work force to our team and we look forward to continuing to manufacture Hasbro games at East Longmeadow and Waterford while also adding volume from both our current and new global customers.”
It is anticipated that the transaction, which is subject to the signing of definitive agreements and the satisfaction of specified closing conditions, will close in the third quarter of 2015. The specific terms of the transaction were not disclosed.