Key Takeaways
- • The FTC and a bipartisan coalition of 12 state attorneys general sued on October 19, 2026 in the Northern District of California to block Platinum Equity's acquisition of playground manufacturer BCI Burke and its combination with PlayPower.
- • The complaint alleges the combined company would control more than 30% of the U.S. commercial outdoor playground equipment market and reduce major manufacturers from five to four, in an industry where the five largest players hold 85% to 90% of sales.
- • Regulators allege Burke's growing success at PlayPower's expense, and that the merger would raise prices, reduce quality, and weaken terms for independent sales representatives.
- • PlayPower called the deal pro-competitive and said it looks forward to working with the Commission to reach a resolution; Platinum Equity did not comment.
- • The FTC and states seek a permanent injunction, and the parties have agreed to a temporary restraining order while the court considers the case.
Summary
The Federal Trade Commission and 12 state attorneys general, including Republicans from Ohio and Tennessee and Democrats from California and Washington, filed suit on October 19, 2026 to block billionaire Tom Gores' Platinum Equity from acquiring BCI Burke and folding it into rival PlayPower. The complaint alleges the deal would raise prices, reduce equipment quality and stifle innovation for schools, parks, churches and other customers, according to the publisher's account of the filing.
Platinum Equity acquired PlayPower, a century-old Huntersville, North Carolina company with more than $500 million in sales, 1,800 employees and nine manufacturing facilities, from Littlejohn & Co. in 2025 for an undisclosed price. In February 2026, PlayPower agreed to buy Burke, a Wisconsin-based rival founded in 1920 that reported more than $60 million in 2024 revenue and about 150 employees, from Bertram Capital. The complaint alleges the combined company would control more than 30% of the U.S. commercial outdoor playground equipment market and reduce the number of major manufacturers from five to four. Regulators argue the two firms compete closely for smaller school and daycare projects, often bidding with larger discounts against each other.
PlayPower disputed the characterization, stating that the merger "would create even more competition in a highly fragmented and globally competitive market." The company said it remains confident in the deal and looks forward to working with the Commission. Platinum Equity, which manages $48 billion in assets and is led by Gores as CEO, chairman and principal owner, did not respond to requests for comment. The FTC cites the 2023 merger guidelines, which were issued under Biden and retained by the Trump FTC, in arguing the deal would unlawfully concentrate the market. The lawsuit seeks to block the Burke transaction rather than unwind prior acquisitions.
The industry, pegged at $1.3 billion in 2025 by IBISWorld, has a history of private equity-driven consolidation. PlayPower has rolled up Miracle, Little Tikes Commercial and Playworld, and the complaint alleges product quality and innovation declined after the 2016 Playworld acquisition. The stakes extend to public budgets: according to the complaint, schools and parks often spend $50,000 to more than $1 million on commercial playgrounds, much of it taxpayer-funded, and regulators warn higher prices could mean fewer new playgrounds or larger taxpayer bills.
Platinum Equity acquired PlayPower, a century-old Huntersville, North Carolina company with more than $500 million in sales, 1,800 employees and nine manufacturing facilities, from Littlejohn & Co. in 2025 for an undisclosed price. In February 2026, PlayPower agreed to buy Burke, a Wisconsin-based rival founded in 1920 that reported more than $60 million in 2024 revenue and about 150 employees, from Bertram Capital. The complaint alleges the combined company would control more than 30% of the U.S. commercial outdoor playground equipment market and reduce the number of major manufacturers from five to four. Regulators argue the two firms compete closely for smaller school and daycare projects, often bidding with larger discounts against each other.
PlayPower disputed the characterization, stating that the merger "would create even more competition in a highly fragmented and globally competitive market." The company said it remains confident in the deal and looks forward to working with the Commission. Platinum Equity, which manages $48 billion in assets and is led by Gores as CEO, chairman and principal owner, did not respond to requests for comment. The FTC cites the 2023 merger guidelines, which were issued under Biden and retained by the Trump FTC, in arguing the deal would unlawfully concentrate the market. The lawsuit seeks to block the Burke transaction rather than unwind prior acquisitions.
The industry, pegged at $1.3 billion in 2025 by IBISWorld, has a history of private equity-driven consolidation. PlayPower has rolled up Miracle, Little Tikes Commercial and Playworld, and the complaint alleges product quality and innovation declined after the 2016 Playworld acquisition. The stakes extend to public budgets: according to the complaint, schools and parks often spend $50,000 to more than $1 million on commercial playgrounds, much of it taxpayer-funded, and regulators warn higher prices could mean fewer new playgrounds or larger taxpayer bills.
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