Distributor and wholesaler Alliance Entertainment announced Tuesday it had been selected as the winning bidder to acquire the assets of Diamond Comic Distributors, which are being sold through bankruptcy.
Though still subject to court approval, the proposed deal would see Diamond Comic Distributors, Alliance Game Distributors, Diamond Select Toys & Collectibles and Collectibles Grading Authority, the parent company of action figure grading leader AFA and video game grading company VGA, turned over to the company.
Diamond Comic Distributors filed for bankruptcy in January and had previously been one of the largest distributors of English-language comics in the world.
“This is a transformative opportunity to expand our leadership in the world of gaming and physical collectibles and deepen our reach into thriving fan-driven categories,” Jeff Walker, CEO of Alliance Entertainment, said in a statement. “With their legacy of exclusive titles, deep retail relationships, and strong presence in comics, tabletop games, and collectible merchandise, these businesses are highly complementary to our existing distribution and fulfillment model.
“We see powerful cross-selling potential between our product lines and customer bases, expanding the reach of our expanded product portfolio across both mass retail and specialty channels.”
The businesses acquired support more than 5,000 retail storefronts such as comic and game stores to mass-market chains, according to the company. Alliance highlighted the business’ relationships with brands such as Dungeons & Dragons, Magic: The Gathering and Pokémon as elements that Alliance will leverage.
Alliance says it intends to finance the acquisition through an amendment to its existing $120 million Revolving Credit Facility, expecting it to increase to $160 million, secured by a pledge of the acquired assets as well as existing company collateral.
Shares of Alliance Entertainment Holding Corp, which trades on the NASDAQ under the ticker $AENT, were up more than 12.5% on the news as of Wednesday morning.
Will Stern is a reporter and editor for cllct.