Jakks Pacific Boosts Its Bid for Pen Maker

Malibu toy maker Jakks Pacific Inc. increased its bid Tuesday for Edison, N.J.-based pen manufacturer Pentech International Inc. by about 15% to match an unsolicited offer from privately held RoseArt Industries.

Jakks, which earned $22 million on sales of $183.7 million last year and is best-known for its World Wrestling Federation action figures, hopes to broaden its crafts and activities business by buying Pentech.

The company said in late May that it had signed an agreement with Pentech to acquire it for $1.40 a share. But RoseArt raised the stakes Monday with a $1.60 per share offer, which Jakks echoed Tuesday. Executives at the bidding companies could not be reached for comment.

Pentech’s board of directors is scheduled to meet today to discuss the offers, and shareholders would vote on the decision at a July 28 meeting, said Richard Kalin, a Pentech director.

Based in Livingston, N.J., RoseArt was founded in 1923 and said it has annual sales of nearly $200 million.

Both Jakks and RoseArt said they would assume Pentech’s $19 million in debt if they acquired the company. Pentech reported a net loss of $330,000 on sales of $61 million last year, and had net losses in four out of the last five years. It makes more than 200 writing instruments under its Color Club and other brands.

Jakks shares fell 25 cents to close at $17.94, while Pentech shares rose 16 cents, or about 12%, to close at $1.50 in trading Tuesday on Nasdaq.