Mattel 2006 Annual Report Download - page 108
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Note 12—Acquisition
On October 3, 2006, Mattel completed its acquisition of Radica for net cash paid of $196.4 million, which
includes the purchase price and acquisition costs of $235.1 million, net of cash acquired of $38.7 million. Radica
manufactures and markets a diverse line of electronic entertainment products including electronic games carrying
the Radica:®, 20Q™, Cube World™, and Play TV®brand names and youth electronics carrying the Girl Tech®
brand name. Under the Agreement and Plan of Amalgamation (the “Amalgamation Agreement”) between Radica
and certain of Mattel’s wholly owned subsidiaries, shareholders of Radica received $11.55 in cash for each share
of Radica common stock at the effective time of the amalgamation. Mattel, Inc. is a party to the Amalgamation
Agreement solely as a guarantor of the obligations of its subsidiaries under the Amalgamation Agreement.
Mattel’s acquisition of Radica is intended to maximize and combine the core competencies of each company, as
well as provide growth opportunities internationally and for existing brands like Barbie®, Hot Wheels®, and
Fisher-Price®.
Radica had net sales of $58.7 million from the date of acquisition to December 31, 2006, and its results of
operations are included in the 2006 consolidated financial statements following the date of acquisition. Radica’s
results of operations are not material to Mattel and, therefore, pro-forma results of operations for 2006 and 2005
have not been provided. The following table summarizes the balance sheet of Radica as of the acquisition date
based on the estimated fair values of the assets acquired and liabilities assumed:
October 3, 2006
(In thousands)
Cash and equivalents ............................................ $ 38,698
Accounts receivable ............................................. 33,226
Inventories .................................................... 35,309
Property, plant and equipment ..................................... 17,647
Goodwill ..................................................... 107,584
Identifiable intangible assets ...................................... 54,200
Other assets ................................................... 9,764
Total assets ............................................ $296,428
Liabilities ..................................................... $ 61,365
Equity ........................................................ 235,063
Total liabilities and equity ................................ $296,428
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