Alliance Entertainment Acquires Handmade by Robots

Rhea-AI Summary

Alliance Entertainment (AENT) has acquired Handmade by Robots, a collectible vinyl figures brand known for replicating knitted/crocheted plush toys aesthetics. The acquisition strengthens AENT's collectibles division and expands its licensed products portfolio. Handmade by Robots creates detailed vinyl figures featuring characters from major franchises like DC Comics, Ghostbusters, Harry Potter, and others.

The company plans to leverage its global distribution network across 72 countries and partnerships with major retailers like Costco, Walmart, Target, and Hot Topic to expand the brand's reach. Alliance will collaborate with previous owner BDA (Bensussen Deutsch & Associates) for design and manufacturing services. The brand will continue selling through handmadebyrobots.com and various social media channels, offering exclusive releases and chase versions.

Positive

• Expansion into licensed collectibles market through acquisition
• Access to major retail partnerships (Costco, Walmart, Target, Hot Topic)
• Global distribution network across 72 countries
• Strategic partnership with BDA for design and manufacturing
• Potential for exclusive and edition releases

Negative

• Acquisition cost not disclosed
• Integration costs and expenses not specified

Insights

Financial Analyst

This strategic acquisition positions Alliance Entertainment to capitalize on the lucrative collectibles market, particularly the high-margin vinyl figure segment. The deal enhances AENT's product portfolio with unique, licensed collectibles that command premium pricing through their "chase versions." With a market cap of $310.3M, this acquisition could drive significant revenue growth through AENT's extensive distribution network spanning 72 countries and partnerships with major retailers like Walmart, Target and Amazon.

The collaboration with BDA, leveraging their manufacturing expertise while utilizing AENT's distribution capabilities, creates a powerful synergy. The focus on exclusive licensed products and editions should generate higher margins compared to standard merchandise. The global collectibles market has shown robust growth and this acquisition aligns well with current market trends toward unique, licensed merchandise.

Market Research Analyst

The collectibles market has demonstrated strong resilience and growth potential, with vinyl figures being particularly popular among collectors. Handmade by Robots' unique "knit-like" aesthetic differentiates it in a crowded market, while its roster of high-profile licenses (DC Comics, Harry Potter, Star Trek) provides immediate revenue potential. The strategy to create "chase versions" taps into collectors' psychology, driving demand and secondary market values.

The multi-channel distribution approach, combining traditional retail, e-commerce and direct-to-consumer through handmadebyrobots.com, maximizes market penetration. The planned social media strategy, particularly on Instagram, aligns with current collecting trends where community engagement drives brand value and sales.

Alliance teams up with BDA to accelerate growth for highly sought-after vinyl-figure collectibles

PLANTATION, Fla., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT), a global distributor and wholesaler specializing in music, movies, video games, electronics, arcades, toys, and collectibles, is proud to announce the acquisition of Handmade by Robots, a highly sought-after line of collectible vinyl figures. This acquisition bolsters Alliance Entertainment's growing collectibles division and reflects the company’s ongoing commitment to offering unique and innovative licensed products to its retail partners and collectors worldwide.

Handmade by Robots: A Perfect Fit for Collectors

Handmade by Robots creates unique licensed vinyl figures that replicate the aesthetic of knitted or crocheted plush toys, featuring detailed “knit-like” patterns sculpted into the vinyl. Known for their artistic appeal and licensed characters from beloved franchises like DC Comics, Ghostbusters, Harry Potter, Star Trek, and Stranger Things, Handmade by Robots has captured the hearts of fans and collectors alike. Their product line includes durable, beautifully designed collectibles in various sizes, catering to both casual enthusiasts and dedicated collectors.

“We are super excited to add Handmade by Robots to our assortment of exclusive licensed products and bring their incredible designs to collectors worldwide,” said Jeff Walker, CEO of Alliance Entertainment. “This acquisition will launch us into the licensed collectible business, leveraging our strong relationships with entertainment licensors to create a wide range of iconic characters. The unique design and branding of Handmade by Robots is a home run, and we can’t wait to produce your favorite characters and limited, exclusive chase versions that collectors will love.”

A “chase version” refers to a rare variant of a collectible figure, featuring unique design differences from the standard version with a limited production quantity. These rare editions are highly valued by collectors for their scarcity and distinctive appeal.

Strategic Growth and Market Expansion

With Handmade by Robots now part of its portfolio, Alliance Entertainment plans to focus on producing a curated selection of top-tier licensed products featuring the most well-known and beloved characters from movies, TV, music artists, video games, and anime. By leveraging Alliance’s extensive distribution network and partnerships with major retailers such as Costco, Walmart, Target, and Hot Topic, as well as ecommerce retailers like Amazon, eBay, SHEIN, and more, the company is poised to significantly expand the reach and visibility of Handmade by Robots’ unique collectible line. Alliance will also sell globally to its customers located in 72 countries.

The Handmade by Robots website, handmadebyrobots.com, will serve as the definitive destination for fans, featuring the full range of products and offering exclusive releases. The brand’s Instagram strategy will further engage collectors and expand its reach, with every new item shared on its growing Instagram account. Handmade by Robots aims to foster a community of fans showcasing their collectibles in unique and exotic locations around the world, while leveraging influencer partnerships and promotional campaigns to drive significant sales through social media.

Alliance acquired Handmade by Robots from Bensussen Deutsch & Associates LLC (BDA), the world's leading Merchandise Agency™ for Fortune 1000 enterprise companies, entertainment properties, and activation partner for iconic sports leagues and teams around the globe.

Moving forward, Alliance and BDA will collaborate to support the continued growth and success of Handmade by Robots. This partnership leverages Alliance’s global distribution network and expertise in collectibles alongside BDA’s proven track record in merchandising innovation and manufacturing, positioning the brand for long-term success. BDA will continue to provide design and manufacturing services in this great alignment of the two powerhouse companies.

“This is just the beginning of what we see as a very exciting journey for Handmade by Robots under the Alliance Entertainment umbrella,” Walker added. “We are eager to build on the success these products have already achieved, introducing them to even more fans and collectors around the world while continuing to innovate and expand the collectability of Handmade by Robots.”

About Alliance Entertainment

Alliance Entertainment (NASDAQ: AENT) is a premier distributor of music, movies, toys, collectibles, and consumer electronics. We offer over 325,000 unique in-stock SKU’s, including over 57,300 exclusive compact discs, vinyl LP records, DVDs, Blu-rays, and video games. Complementing our vast media catalog, we also stock a full array of related accessories, toys, and collectibles. With more than thirty-five years of distribution experience, Alliance Entertainment serves customers of every size, providing a robust suite of services to resellers and retailers worldwide. Our efficient processing and essential seller tools noticeably reduce the costs associated with administrating multiple vendor relationships, while helping omni-channel retailers expand their product selection and fulfillment goals. For more information, visit www.aent.com.

About BDA
Bensussen Deutsch & Associates, LLC (BDA) is a global Merchandise Agency™ providing customized marketing, branded merchandise, e-commerce, and fulfillment solutions for iconic sports organizations, entertainment properties and Fortune 1000 enterprises. With over 40 years of experience, BDA brings brands closer to their customers by providing highly engaging promotional products and branded merchandise experiences. Renowned clients across automotive, sports, technology, entertainment, medical, fitness, and beverage industries rely on BDA to activate, inspire, and promote their events, employees, and brands. BDA is the largest, independently owned branded merchandise agency with operations in over 50 locations worldwide. For more information on the power of merchandise, visit www.bdainc.com.

Forward Looking Statements

Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether identified in this Press Release, and on the current expectations of Alliance’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Alliance. These forward-looking statements are subject to a number of risks and uncertainties, including risks relating to the anticipated growth rates and market opportunities; changes in applicable laws or regulations; the ability of Alliance to execute its business model, including market acceptance of its systems and related services; Alliance’s reliance on a concentration of suppliers for its products and services; increases in Alliance’s costs, disruption of supply, or shortage of products and materials; Alliance’s dependence on a concentration of customers, and failure to add new customers or expand sales to Alliance’s existing customers; increased Alliance inventory and risk of obsolescence; Alliance’s significant amount of indebtedness; our ability to refinance our existing indebtedness; our ability to continue as a going concern absent access to sources of liquidity; risks and failure by Alliance to meet the covenant requirements of its revolving credit facility, including a fixed charge coverage ratio; risks that a breach of the revolving credit facility, including Alliance’s recent breach of the covenant requirements, could result in the lender declaring a default and that the full outstanding amount under the revolving credit facility could be immediately due in full, which would have severe adverse consequences for the Company; known or future litigation and regulatory enforcement risks, including the diversion of time and attention and the additional costs and demands on Alliance’s resources; Alliance’s business being adversely affected by increased inflation, higher interest rates and other adverse economic, business, and/or competitive factors; geopolitical risk and changes in applicable laws or regulations; risk that the COVID-19 pandemic, and local, state, and federal responses to addressing the pandemic may have an adverse effect on our business operations, as well as our financial condition and results of operations; substantial regulations, which are evolving, and unfavorable changes or failure by Alliance to comply with these regulations; product liability claims, which could harm Alliance’s financial condition and liquidity if Alliance is not able to successfully defend or insure against such claims; availability of additional capital to support business growth; and the inability of Alliance to develop and maintain effective internal controls.

For investor inquiries, please contact:

Dave Gentry
RedChip Companies, Inc.
1-407-644-4256
AENT@redchip.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c314261b-bf63-43fb-a96a-31862cf83866

FAQ

What brands and franchises does AENT's Handmade by Robots produce collectibles for?

Handmade by Robots produces collectible vinyl figures for major franchises including DC Comics, Ghostbusters, Harry Potter, Star Trek, and Stranger Things.

How will AENT distribute Handmade by Robots products?

AENT will distribute through major retailers like Costco, Walmart, Target, Hot Topic, and e-commerce platforms including Amazon, eBay, and SHEIN, reaching customers in 72 countries.

What are chase versions in AENT's Handmade by Robots collection?

Chase versions are rare variant collectible figures with unique design differences from standard versions, produced in quantities for collectors.

What is the role of BDA in AENT's Handmade by Robots acquisition?

BDA, the previous owner, will continue to provide design and manufacturing services for Handmade by Robots, collaborating with AENT for the brand's growth.

Where can collectors purchase AENT's Handmade by Robots products?

Products will be available through handmadebyrobots.com, major retail partners, and e-commerce platforms, with exclusive releases through the official website.