CompaniesPublished:

FTC sues to block PlayPower's proposed purchase of BCI Burke

The regulator alleges the deal would remove a close rival from a concentrated playground-equipment market, raising risks for public buyers and independent sales representatives.

Two of five sculptural playground structures approach an interlocking joint as a suspended plane stops the proposed combination.

The Federal Trade Commission has sued to stop Platinum Equity and its portfolio company PlayPower from acquiring BCI Burke. The agency alleges that combining two large commercial outdoor playground-equipment makers would raise prices and weaken quality and innovation for schools, churches, parks departments and other buyers.

Platinum Equity owns PlayPower, while Burke is described as one of PlayPower's closest competitors. The proposed deal would add Burke to a portfolio that already includes Miracle Recreation Equipment Company, Little Tikes Commercial and Playworld Systems, Inc.

A market concentrated among five companies

The FTC complaint says five companies, including PlayPower and Burke, own more than a dozen playground-equipment brands and hold 85% to 90% of the U.S. market. It alleges that eliminating direct competition between PlayPower and Burke would further concentrate a market where playground prices have already risen rapidly.

According to the complaint, the deal could let PlayPower charge higher prices while reducing service, product quality and innovation. The FTC also alleges that independent sales representatives could receive lower commissions or worse service terms.

Attorneys general from Arizona, California, Colorado, Illinois, Nevada, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Washington and Wisconsin joined the complaint. Their participation broadens the government challenge but does not decide the underlying allegations.

The deal is still proposed

The Commission voted 2-0 to authorize staff to seek a permanent injunction blocking the acquisition. That vote authorizes the challenge; it is not a court ruling that the transaction violates antitrust law.

The FTC's announcement does not include a judicial decision or a response from Platinum Equity, PlayPower or Burke. Until the case is resolved, the predicted effects on prices, service, innovation and sales representatives remain allegations rather than completed outcomes.

Next story