Crave acquired for more than $8.1 million

The publisher behind the Pinball Hall of Fame and Pro Bull Rider brands has a new lease on life. Online-gaming distributor Fillpoint announced today that it purchased Crave Entertainment and sister company SVG Distribution from their moribund parent company Handleman Company.

According to a filing with the Securities and Exchange Commission, Fillpoint purchased the two companies for $8.1 million in cash, with a number of variable payments to be made in coming years. Significantly, Fillpoint will also have to pay half of all Crave and SVG net profits more than $300,000 for the next two years.

That's a significant depreciation from 2005, when Crave Entertainment was acquired by Handleman Company in a deal worth up to $95 million. Considering Handleman's 71-year history as a retail music distributor, it seemed that Crave had found a parent company capable of offering stability while taking advantage of the growing gaming industry.

That didn't turn out to be the case, given that in October Handleman revealed a plan to liquidate and dissolve the company, citing "dramatic changes in the music industry" as the reason for its failure. By that point, Handleman had already sold off its US, Canadian, and UK music businesses to various other parties, and it was in search of a buyer for its remaining businesses, including Crave. In Handleman's report for the year ended May 3, 2007, the company's gaming businesses collectively posted losses of $21.33 million on sales of nearly $260 million.

"The acquisition of SVG/Crave enables us to provide significantly expanded offerings in value and publishing both online and in-store," Fillpoint president and CEO Glenn Rockwood said. "We're excited about the new opportunities introduced by this acquisition, and we will immediately begin working to strengthen and expand the core SVG and Crave Entertainment Group businesses."

Fillpoint's announcement also included news of Crave's 2009 slate of games, with listings for Crayola Colorful Journey, Monster Mayhem: Build & Battle, and versions of Pinball Hall of Fame: Williams Collection for "next-generation consoles." Williams Collection was originally released on the PlayStation 2, PSP, and Wii in February of 2008.