WA, Multiple States Sue to Block Merger of 2 Biggest US Playground Manufacturers

It's not often that red and blue states agree on lawsuits, but in this case, they are.

  Multiple State Sue to Stop Merger of 2 Biggest US Playground Manufacturers

At face value, it might seem trivial or strange but WA is joining Texas, CA., Nevada, Tennesee and 8 other states, their Attorney's General have filed a lawsuit protesting the recent merger of 2 major manufacturers. This follows a move by the FTC to also pump the brakes on the deal.

It's likely at least some of the public playgrounds in the Tri-Cities and elsewhere in the region were built by one of two companies: PlayPower, and BCI Burke, or one of their subsidies.

   They Control the Bulk of the Public Playground Business

According to the WA State AG's Office, they operate several sub-brands under the names of Miracle Recreation Equipment Company, Little Tikes Commercial, and Playworld Systems, Inc. 

When a city, or group seeks to build or replace a playground, these two companies control between 85 and 90 percent of the market. Now, some other regional companies sometimes build them, occasionally local businesses donate time and workers to build such a facility--like the Playground of Dreams in Columbia Park. But nationwide, they have huge control.

   These States Say the Recent Merger Will Drive up Prices

The lawsuit protesting the recent merger says it will give them an unfair share of the public child playground-recreation market, which will drive up prices. These two companies also contract with cities for business.

Now, a quick search of playgrounds in the Tri-Cities did show several were built by regional construction firms, and not PlayPower or BCI Burke. But the lawsuit, and accompanying data, shows nationwide, they control most of the market.  Some park construction and renovations in our area did not list who the contractor was.

 Will the Lawsuit Succeed?

The merger was first announced a number of months ago, and sources say it's already in progress. But we do know government officials, including the Federal Trade Commission (FTC) and others can step in and block corporate dealings.