As it integrates the K’nex construction toy business it bought earlier this year, Basic Fun will continue with existing K’nex licenses for Tinker Toys and Lincoln Logs (from Hasbro) and Mario Kart (from Nintendo), says CEO Jay Foreman..It plans to replace its own C3 label with K’Nex by 2019, says Foreman. Basic Fun didn’t retain K’Nex’s licenses for Plants vs. Zombies, My Little Pony and Nitro Circus. Basic Fun purchased K’Nex from PNC Bank for $21 million.

K’Nex generated about $40 million in annual revenue and Basic Fun kept its office and plant in Hatfield, Pa. along with 40 employees. Former K’Nex CEO Michael Araten is a consultant to Basic Fun and company’s founders, Joel and Bob Glickman, continue to operate K’Nex’s plant. Cathay Capital, which invested in K’Nex in 2016, has taken a minority stake in Basic Fun, says Foreman.

Meanwhile, the company has parted ways with World Wrestling Entertainment (WWE) license after a five-year run. Basic Fun fielded WWE “Smackdown Universe” constructions sets.

“Maybe it was the way we fabricated it, but the consumer just didn’t connect with it,” says Foreman. “We don’t attribute that to the WWE or the appeal of the brand. Maybe the smaller figures” in the playsets “weren’t where the consumer interest was. We just both agreed that it was time to give it a rest.”

Contact:

Basic Fun, Jay Foreman, Pres., 561-997-8901, Jay.Foreman@basicfun.com