As part of a wider business review, Funtastic Limited has sold off its confectionery arm, which handles brands such as Fizzers, Xtreme Sour Straps and Zaini Chocolate Eggs, for $1.05 million.
The deal will see all inventory, brand names and intellectual property acquired by Sweet Season Pty Ltd which trades as Universal Candy, and will likely be completed by the end of the financial half year – 31 January.
Funtastic’s confectionery arm generated $4.2 million in revenue during FY20, approximately 17 per cent of the wider business’ total revenue.
According to Funtastic’s new CEO Louis Mittoni, who stepped into the role when his Hobby Warehouse Group was acquired in November, the sale is part of the ongoing review of Funtastic’s product ranges, customer segments and operations.
“It accelerates materialisation of value for part of the business and will allow investment to build scale and to right-size the business, aligned with the planned growth and focus of the company to deliver our mission of encouraging children to engage with as many forms of play as possible and assist people to explore, create and live life more fully,” Mittoni said.
Mittoni previously said the acquisition would aim to further Toys ‘R’ Us’ comeback, with Funtastic and Mittoni Technologies fueling the wholesale side of the operation, while Toys ‘R’ Us and Babies ‘R’ Us will serve customers directly.