Jazwares‘ owner is about to have a new owner.
Berkshire Hathaway, the legendary holding company led by Chairman and CEO Warren E. Buffett, is getting into the toy business through its $11.6 billion acquisition of Alleghany Corp. While Alleghany is known for its holdings in the insurance business, its subsidiary, Alleghany Capital Corp., maintains a diverse portfolio of eight companies in non-financial industries, including Jazwares.
“Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years,” Buffett says. “Throughout 85 years the Kirby family has created a business that has many similarities to Berkshire Hathaway.”
The deal is expected to close in the fourth quarter of this year and no changes to any of the involved businesses are expected at this time.
Jazwares is hailed as one of the fastest-growing toymakers in the U.S. and hit a milestone last year with more than $1 billion in sales driven by brands such as Squishmallows, Pokémon, and Fortnite. The company is also spreading its wings with the opening of Jazwares Game Studio and forays into the pet and seasonal businesses.
Alleghany Capital Corp. first made an investment in Jazwares back in 2014.
Buffett previously dipped his toes into the world of kids’ entertainment as the titular star of Warren Buffett’s Secret Millionaires Club, an animated series that originally aired on The Hub Network and is now distributed by Genius Brands International’s Kartoon Channel.