Funko Buys Underground Toys Limited
Acquisition will bolster the licensed merchandise manufacturer’s international growth strategy.
Funko has completed an agreement to acquire substantially all of the assets of Underground Toys Limited, a London-based manufacturer and distributor of licensed products.
Financial terms of the transaction were not disclosed; however, the operation of Funko’s EMEA business will be led by Underground Toys’ managing director Andy Oddie, who will assume the position of managing director, EMEA.
“We have been Funko’s European distributor for some time now and are excited to join the world’s leader in pop culture licensing,” says Oddie. “Funko and Underground Toys are a natural fit given our shared commitment to high-quality, stylized pop culture products and we see great opportunities to create compelling cross-category pop culture offerings by leveraging our combined skills and experience.”
Underground Toys was established in 2001 and produces licensed products for brands including Star Wars, “Doctor Who,” Marvel, WWE and DC Comics, among others. In January 2014, Funko and Underground Toys entered a European distribution agreement where Underground Toys exclusively distributed Funko products as well as its own range of licensed merchandise to European retailers such as Toys ‘R’ Us, Tesco, ASDA, Carrefour and FNAC.
“Over the last two years our relationship with Underground Toys has resulted in an extensive increase in the distribution of our products throughout Europe,” says Brian Mariotti, chief executive officer, Funko. “This transaction will expand upon our already successful relationship and fully unite Funko with the Underground Toys team to support and advance our international growth strategy. We are excited to apply our unparalleled creative design and speed-to-market capabilities to drive continued growth in the business and position ourselves to capitalize on the tremendous opportunities ahead.”