The Florida-based toy company basic Fun has completed its acquisition of K'Nex.
"Substantially all of the assets of hatfield-based K'Nex have been purchased by Boca Raton, Florida-based toy company basic Fun," said a statement put out on Friday, February 9th.
"In connection with the acquisition, Basic Fun did not assume the liabilities of K'Nex. All proceeds from the sale were paid to PNC Bank in satisfaction of its outstanding secured loan," said K'Nex.
Last month, PNC Bank held a public auction, but had no bidders for K’Nex and its parent company Smart Brands International LLC. The auction came after legal notice published earlier in the month said PNC had received an offer from a third party of the company, with an offer of $21million on the table.
K’Nex will continue operations in Hatfield as part of Basic Fun and is reaching out to suppliers and vendors ‘to arrange go forward agreements to supply the company with parts and services required to continue operation, as well as engaging with new vendors.
“It’s the current intent of the company to continue to source parts and as much of the production in America as possible, as has been the case over the years,” the company said.
“The company has a long term sourcing agreement with Hatfield-based Rodon to supply the core parts for the company’s products. The company has retained the majority of its current work force following the acquisition.”
The sale closed on February 6 this year.