O'Connor-based Brainytoys Ltd has signed its first world-wide licensing ageement to develop a range of products using the 'HUMMER' brand, an iconic US brand of large off-road vehicles.
O'Connor-based toy developer Brainytoys Ltd has signed its first world-wide licensing ageement to develop a range of products using the 'HUMMER' brand, an iconic US brand of large off-road vehicles.
The agreement with Equity Management Inc, acting as licensing agent for General Motors Corporation, will allow Brainytoys to use GMC's HUMMER brand to develop a range of HUMMER branded products using standard electronic and mechanical drive systems, and remote control technologies sourced from its wholly-owned Enertec Division, as well as Brainytoys own suite of innovative play patterns.
Brainytoys managing director Alex Aguero said HUMMER was an iconic US brand with worldwide recognition and Brainytoys had several products in the pipeline for this line.
"This agreement is Brainytoys' first world-wide agreement, opening up substantial world markets for our
HUMMER product line," he said.
Brainytoys is also currently negotiating its biggest licensing deal to date, to become the Master Toy Licensee for a significant US Brand, encompassing an extensive product range covering multiple price points with world coverage.
"Brainytoys is very proud to have been offered such a major opportunity. The offer was made on the strength of Brainytoys' product execution skills and innovative play pattern developments. The offer confirms that our efforts have registered with Licensors, opening up the potential for several other similar opportunities," Mr Aguero said.
"If negotiations are successfully concluded this will be Brainytoys' biggest licensing deal by far. Our licensing advisors in the US estimate that this brand could potentially be worth over US $100 million in retail sales over the next few years and the opportunities open to Brainytoys are significant."
Brainytoys Ltd has also entered into a Heads of Terms agreement today to acquire a well established UK-based independent importer and distributor company operating in the toy and hobby sector, with a strong market
presence and a diverse valuable customer base.
BRT is restricted by vendor imposed confidentiality provisions from disclosing the name and description of the business until the proposed legal completion date of 29 February 2008.
The business was acquired for a purchase consideration of ₤350,000 ($840,000) representing the Net Tangible Assets of the business, to be satisfied by the issue of shares (based upon market price at the time of Legal Completion) to a value of ₤100,000 ($240,000) and cash of ₤250,000 ($600,000).
The long established toy and hobby business has an impressive sales network, logistical infrastructure and customer base operating geographically principally in the UK with annual sales and profits before tax of approximately ₤1.6 million ($4 million) and ₤200,000 ($500,000) respectively.
