Mar 8, 2023 - Economy

Toys "R" Us owner now valued at $1.6 billion

Dan Primack

Illustration of a giraffe eating money — Illustration: Sarah Grillo/Axios

Ares Management has invested $375 million for a minority equity stake in WHP Global, the retail brand management firm whose portfolio includes Toys "R" Us.

Zoom out: It's fascinating to see private equity go back to a well in which it previously drowned.

Details: The deal grants a $1.6 billion valuation to WHP, whose other brands include Babies "R" Us, Anne Klein, Isaac Mizrahi, Express, Lotto and Joseph Abboud.

Two partners at Ares will join the WHP board of directors.
Oaktree Capital Partners is an existing WHP investor.

The bottom line: Ares is buying into an asset-light model that benefits from consumer affinity for recognized brands, while sidestepping the operational headaches embedded in bricks and mortar.

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Toys "R" Us owner now valued at $1.6 billion

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