FTC Bureau of Competition Statement on Termination of PlayPower’s Acquisition of Rival Playground Manufacturer Burke

Federal Trade Commission Bureau of Competition Director Daniel Guarnera issued the following statement in response to the announcement that Platinum Equity and its portfolio company, PlayPower, abandoned the proposed acquisition of BCI Burke following a lawsuit filed last week by the FTC and a dozen states to block the proposed merger:

"PlayPower's decision to abandon its proposed acquisition of Burke in the face of the FTC's enforcement action is a win for American consumers and will help drive down the prices that schools, churches, daycares and parks departments pay for playgrounds. State and municipal governments spend hundreds of millions of dollars on playground equipment every year, so taxpayers are among the biggest beneficiaries from continued head-to-head competition between PlayPower and Burke. Tens of millions of children and their families will also benefit from higher quality, better service and greater playground innovation.

The top five manufacturers-including PlayPower and Burke-control 85%-90% of the market for commercial outdoor playground equipment. This proposed merger is the latest in a series of acquisitions by PlayPower. It would have cut the number of major competitors down from five to four and would have given PlayPower's owners control over more than 30% of the relevant market. The remaining fringe of small manufacturers often lack the distribution channels, sales representatives, safety certifications, manufacturing capacity and product portfolios needed to replace the competition that would have been lost from this proposed merger.

I want to thank the FTC staff who worked to assemble an overwhelming evidentiary record in this matter, as well as our state partners for their collaboration. The Trump FTC will continue to protect American consumers from bad deals that raise prices, hurt quality and reduce innovation."