A new playground can cost anywhere from $50,000 to more than $1 million, depending on the size and equipment. But building a new playground or replacing aging equipment at a school or neighborhood park could cost even more if two major playground manufacturers merge, according to a lawsuit filed this week by Washington Attorney General Nick Brown, 11 other state attorneys general, and the Federal Trade Commission.
The lawsuit seeks to prevent PlayPower, which owns popular playground brands including Little Tikes Commercial, Miracle Recreation and Playworld, from purchasing competitor BCI Burke. The two companies are among five manufacturers that together account for roughly 85% to 90% of commercial playground equipment sales nationwide. According to the 48-page federal complaint, Burke has won customers from PlayPower by offering competitive prices, innovative equipment, and better service.
The rivalry has benefited buyers. The lawsuit alleges that both manufacturers offer bigger discounts when competing directly for playground contracts. But rather than fight harder to win back customers, officials argue, PlayPower wants to buy its rival. State and federal officials argue that allowing that to happen would reduce choices and leave communities paying more:
“This merger would harm our communities by increasing the cost and lowering the quality of the playground equipment Washington kids use every day,” Brown said in an Oct. 19 statement. “We will continue to oppose anticompetitive mergers that raise prices on Washingtonians and violate the law.”
The complaint also points to PlayPower’s history of buying competitors, including Little Tikes Commercial, Miracle Recreation and Playworld. It alleges that prices have risen substantially as a handful of companies have increasingly dominated the playground equipment industry. Just five manufacturers now control an estimated 85% to 90% of the U.S. commercial playground equipment market.
The lawsuit alleges that Burke’s competition has pushed manufacturers to improve playground designs, safety, durability and customer service. Officials say eliminating that rivalry could leave schools, parks, and other playground buyers paying more for equipment that isn’t as good.
PlayPower disputes the allegations, saying the merger would strengthen competition rather than weaken it.
According to the lawsuit, PlayPower has already purchased several competing playground brands, and its prices have risen substantially in recent years. Officials worry that another acquisition could further increase costs and discourage manufacturers from developing better equipment.
The lawsuit, filed Oct. 19 in federal court in California, asks a judge to stop the acquisition. The government’s claims have not yet been decided in court. Read the federal complaint
