Basic Fun purchases K’NEX
Company announces details of sale following auction attempt
Toy maker K’NEX now has a new owner.
“Substantially all of the assets of Hatfield based K’NEX have been purchased by Boca Raton, Florida-based toy company Basic Fun,” K’NEX said in a statement Friday.
“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,” K’NEX said.
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 a legal notice published earlier in the month said PNC had re-
ceived an offer from a third party for the company, with an offer of $21 million on the table.
In a statement Friday, K’NEX said the company 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 longterm 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,” it said.
A website has been established at https://k-nexucc.com that says the sale closed on Feb. 6 and provides contact information for creditors to contact, along with the initial legal ad for the auction. In their statement Friday, K’NEX said “no further statements will be forthcoming from the company.” The sale has not been mentioned on either company’s website or social media channels, and Basic Fun and PNC have not responded to requests for comment.
K’NEX was founded in 1992 and sells plastic toys containing color coded wheels, rods, and various connectors, and is located on Bergey Road in Hatfield Township. For more information about the company and its products, call 1-(800) KID-KNEX or visit www.KNEX.com.