HARRISBURG, PA — Pennsylvania has joined the Federal Trade Commission and a coalition of states in a lawsuit seeking to block PlayPower’s proposed acquisition of BCI Burke Company, arguing that the transaction would reduce competition and raise playground equipment costs for schools, municipalities and other publicly funded buyers.
Attorney General Dave Sunday said the proposed acquisition would further consolidate the commercial outdoor playground equipment market, potentially increasing costs for public agencies already facing substantial expenses to build and maintain recreational facilities.
PlayPower, owned by private equity firm Platinum Equity, is seeking to acquire BCI Burke, another major manufacturer of commercial playground equipment. The coalition is requesting a court injunction to prevent the transaction from proceeding.
The challenge centers on the potential loss of competition among suppliers serving schools, churches, parks and recreation departments. Many of those customers rely on taxpayer funding to purchase and install playground equipment.
“This transaction would eliminate yet another major competitor for PlayPower and likely increase costs for playground projects that already require significant taxpayers funds,” Sunday said. “When market options shrink, customers are almost always on the losing end.”
According to the attorney general’s office, PlayPower has previously acquired three other major playground equipment competitors: Miracle, Little Tikes and Playworld. Those acquisitions have occurred since 1993.
The coalition argues that acquiring BCI Burke would further reduce the number of independent suppliers competing for commercial playground equipment contracts.
In addition to potentially increasing prices, the lawsuit contends that reduced competition could weaken incentives to improve product quality and develop new playground equipment.
Those effects could place additional pressure on public budgets supporting parks, recreational facilities and programs serving children and families, according to the coalition.
The legal action seeks to prevent the acquisition before it is completed. The allegations reflect the coalition’s position in the litigation, and the proposed transaction has not been determined unlawful by a court.
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