Gladstone Investment Acquires Majority Stake in McFarlane Toys
McFarlane Toys is getting a new majority owner, with Gladstone Investment Corporation announcing that it has acquired a controlling stake in the collectibles company founded by Todd McFarlane. Gladstone Investment said that it provided both debt and equity financing to complete the transaction. Financial terms of the deal were not disclosed. McFarlane Toys co-owners Todd McFarlane and Stephan Tetrault will remain meaningful shareholders alongside Gladstone and will continue to be actively involved in guiding the company’s strategy and growth.
Founded in 1994, McFarlane Toys designs, produces and distributes licensed action figures, statues and other collectibles across entertainment, gaming, comics, anime and sports. The company works with entertainment studios, video game publishers, sports organizations and other intellectual property owners, selling through national and specialty retailers, distributors, e-commerce and its own direct-to-consumer operation.
Gladstone said its investment will support McFarlane Toys as it continues developing new products and expanding into additional collectible categories. The company also plans to pursue new licensing partnerships and increase its reach in both domestic and international markets.
“When I started McFarlane Toys, the goal was to give fans and collectors products with a level of detail and creativity that stood apart,” said Todd McFarlane, Founder of McFarlane Toys. “That commitment remains at the heart of our business. We are excited to partner with Gladstone Investment and the new opportunities this partnership will create, as we continue developing new products, supporting our licensing partners, and delivering the quality and creativity our fans expect.”
“We have built a strong foundation of talented people, valued licensing partnerships and longstanding retail relationships,” said Stephan Tetrault, Chief Executive Officer and co-owner of McFarlane Toys. “Our partnership with Gladstone represents an exciting opportunity to accelerate our growth, expand our global reach, and continue diversifying our product portfolio. With Todd’s creative vision, our talented team, and Gladstone’s experience and resources, we are exceptionally well positioned for the next chapter of McFarlane Toys.”
Todd McFarlane and Tetrault are both staying invested in the company and remain involved in its direction rather than exiting as part of the transaction. Gladstone is instead positioning the deal as a partnership intended to give McFarlane Toys additional resources for its next stage of expansion. Gladstone Managing Director Michael Cueter pointed to McFarlane Toys’ brand recognition, design capabilities and relationships with licensors and retailers as reasons for the investment. He also highlighted the company’s collector following and its ability to bring new properties and product formats to market.
Gladstone President Erika Highland described the acquisition as consistent with the investment company’s strategy of partnering with successful founder- and management-owned businesses. Gladstone Investment is a publicly traded business development company that makes equity and secured debt investments in lower middle market companies, including transactions involving acquisitions and changes in control.
Intrepid Investment Bankers served as the exclusive financial advisor to McFarlane Toys on the transaction.