FTC Targets Private Equity-Backed Playground Merger in Antitrust Push

The Federal Trade Commission and attorneys general from 12 states have filed suit in federal court in California seeking to prevent PlayPower, a private equity-backed manufacturer owned by Platinum Equity, from acquiring BCI Burke, a rival commercial playground equipment maker owned by Bertram Capital. Regulators contend that combining two major suppliers would weaken competition and could raise costs for schools, municipalities and other institutional buyers. The FTC voted 2-0 to authorize the legal action, and the complaint was filed in the U.S. District Court for the Northern District of California, according to Axios.

The FTC's complaint alleges that five companies, including PlayPower and BCI Burke, collectively control approximately 85% to 90% of the U.S. commercial outdoor playground equipment market. Regulators argue that eliminating direct competition between the two manufacturers could lead to higher prices, reduced product development and weaker service quality. The complaint also alleges the deal could harm independent sales representatives through reduced commissions or less favorable terms. The FTC further contends that Burke has been gaining market share from PlayPower. Colorado Attorney General Phil Weiser criticized the transaction, arguing that PlayPower was seeking to acquire a competitor rather than compete through stronger commercial performance, according to Axios.

Beyond the immediate case, Axios reported that the lawsuit could become an important test of how U.S. regulators evaluate acquisition-driven growth strategies under the merger guidelines adopted during the Biden administration, which allow authorities to examine whether individual deals form part of a broader strategy that progressively reduces competition. PlayPower has made several acquisitions over recent decades, including its 2016 purchase of Playworld, though Axios noted those deals predate Platinum Equity's ownership.

PlayPower has rejected the suggestion that the acquisition would undermine competition. In comments to Axios, a company spokesperson said the combination would strengthen the merged business and improve its ability to compete in international markets, describing the two manufacturers as complementary. The company said it remains confident in the deal and will continue engaging with the FTC to seek a resolution.

The lawsuit is notable for the cooperation between federal antitrust officials and a bipartisan coalition of state attorneys general: Arizona, California, Colorado, Illinois, Nevada, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Washington and Wisconsin. Axios reported that coordinated federal-state antitrust actions have been relatively uncommon during the current administration. An FTC spokesperson pointed to a 2025 challenge involving GTCR's proposed acquisition of Surmodics as a precedent for working alongside state authorities.