Playground Equipment Merger Abandoned After Federal, State Challenge

RALEIGH – A proposed merger between two major playground equipment manufacturers has been abandoned after North Carolina joined a federal antitrust lawsuit seeking to block the deal.

PlayPower has withdrawn plans to acquire BCI Burke, according to the N.C. Attorney General’s Office.

The decision comes just days after Attorney General Jeff Jackson joined the Federal Trade Commission and attorneys general from 11 other states in asking a federal court to stop the acquisition.

PlayPower and Burke equipment can be found at playgrounds across North Carolina, including in Benson and Selma.

The lawsuit alleged the merger would reduce competition in the commercial outdoor playground equipment market and could lead to higher prices, lower quality and less innovation.

The companies are among the largest commercial playground equipment manufacturers in the country.

According to the earlier federal complaint, five companies — including PlayPower and Burke — control an estimated 85% to 90% of the U.S. commercial outdoor playground equipment market.

PlayPower already owns several playground brands, including Miracle Recreation Equipment Company, Little Tikes Commercial and Playworld Systems.

The proposed transaction would have added Burke to that portfolio.

State and federal officials argued the deal could have affected municipalities, schools, churches, parks departments and other organizations that purchase playground equipment, particularly when projects are funded with taxpayer dollars.

After PlayPower withdrew from the proposed acquisition, the coalition determined the lawsuit was no longer necessary, according to the Attorney General’s Office.

“This deal would have made playgrounds more expensive for schools and towns to build for our kids, so we sued the company to stop it,” Jackson said. “They just backed down.”

The original lawsuit was filed by the FTC and attorneys general from North Carolina, Arizona, California, Colorado, Illinois, Nevada, Ohio, Pennsylvania, Tennessee, Texas, Washington and Wisconsin.

The proposed acquisition will not move forward.

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This story has been updated