The Right Start, Inc. has completed its acquisition of Zany Brainy, Inc. The $100 million purchase includes all of the operating assets of 187 Zany Brainy retail stores.
Calabasas, CA-based Right Start has also closed on the sale of $22.3 million in convertible securities to Athanor Holdings and several shareholders. These holdings will represent roughly 48% of the common stock of the company, not counting management and director stock options.
The Right Start is a specialty retailer and cataloger of development products and toys for children up to age four. Zany Brainy offers products for children aged four to 12.
"We see terrific cross-marketing opportunities between the brands and the opportunity to put a Right Start boutique inside Zany stories, said Jerry R. Welch, CEO of Right Start, in a statement. "We a result, we will leverage the existing Zany real estate and create a continuous relationship with mothers for 12 years, extending the lifetime value of our customers."
