Antitrust officials try to block playground equipment merger
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Aïda Amer/Axios
The Federal Trade Commission and a dozen state attorneys general have sued to stop Platinum Equity and portfolio company PlayPower from buying rival playground equipment maker BCI Burke from Bertram Capital.
Why it matters: It's been rare in Trump 2.0 for federal and state antitrust regulators to work in concert.
Zoom in: At a top level, this feels like basic antitrust enforcement. The FTC and states argue that the merger would increase prices — particularly for schools, municipalities, churches that buy outdoor playground equipment — and decrease product innovation.
- But the case also may test Biden-era merger guidelines that take particular aim at serial acquirers.
- Specifically, they say that if a deal is part of a pattern or strategy of multiple acquisitions, the regulators can "consider the cumulative effect."
- PlayPower has made several large acquisitions over the past few decades, including Playworld in 2016, although all of that predates Platinum's ownership. So it both is and isn't about private equity rollups.
Also: Another part of the Biden-era guidelines was that regulators could consider a merger's concentration impact on an already-consolidated market.
- In this situation, the FTC argues that the top five players — including PlayPower and BCI Burke — have combined market share of between 85% and 90%.
Primary sources: Read the FTC's complaint.
What they're saying: Colorado AG Phil Weiser said in a statement: "PlayPower competes head-to-head with Burke today, but PlayPower is losing ground to Burke. Rather than strengthen its competitive efforts against its rival, PlayPower is attempting to eliminate the pressure it faces from Burke by acquiring it."
- A PlayPower spokesperson said: "We continue to believe that our merger with BCI Burke would create even more competition in a highly fragmented and globally competitive market, not diminish it. By bringing together two complementary businesses, we would create a stronger American company [for] all stakeholders ... We remain confident in the merits of our combination and look forward to working with the Commission to reach a resolution."
- An FTC spokesperson pointed Axios to a joint federal/state antitrust case brought in early 2025 against GTCR's purchase of Surmodics, and adds that "we always welcome state partners in our litigation" — including on consumer protection issues.
The bottom line: If this actually goes to court, it could have reverberations for future rollups.
