FTC and 12 states sue to block PlayPower's acquisition of rival Burke

The FTC, joined by attorneys general from 12 states, filed suit alleging that private-equity-owned PlayPower's proposed acquisition of BCI Burke would combine two of the largest commercial outdoor playground equipment makers and significantly increase concentration in an already consolidated market. The complaint alleges the deal would eliminate head-to-head competition between the companies, driving up prices and reducing quality and innovation for schools, churches, and parks and recreation departments that buy the equipment. The Commission voted 2-0 to authorize the suit, which seeks a permanent injunction in federal court in California.

Why it matters. A successful challenge would block a merger affecting pricing and quality for public institutions nationwide and signals continued FTC scrutiny of serial roll-up acquisitions by private equity-owned companies.