Build-A-Bear Workshop Inc., an interactive, entertainment retailer, completes the simultaneous purchase of the holder of the Build-A-Bear Workshop franchise in the UK & Eire, and The Bear Factory, owned by Hamleys Limited for $41.4m.

Following the deal, Build-A-Bear Workshop intends to re-brand the Bear Factory store portfolio and merge it with the existing portfolio in the UK to create a network of approximately 40 stores in the UK & Eire. As holders of the UK & Eire franchise, we feel that it is the right time to sell on the business to the franchisor, so that Build-A-Bear Workshop Inc. can consolidate its position as the unquestioned market leader in the territory. Once the store portfolios are fully integrated under the Build-A-Bear Workshop brand, the business will be very profitable and highly successful. It hhas been a very successful market entry, starting in 2002 and exiting four year into the roll-out.

Build-A-Bear Workshop, Inc (NYSE: BABW). is the only global company that offers an interactive make-your-own-stuffed animal retail-entertainment experience. Founded in St. Louis in 1997, the company currently operates more than 200 stores in the United States and Canada and posted total revenue of $362 million in fiscal 2005.

D5 Capital advised Amsbra Limited, owners of the UK & Eire franchise for Build-A-Bear Workshop.

www.buildabear.com

 

Rupert Ashe, CEO, D5 Capital

M: +44 7775 781803

E: rupert@d5capital.com