The Federal Trade Commission and attorneys general from 12 U.S. states have filed a lawsuit seeking to prevent private equity-backed PlayPower from acquiring rival playground equipment manufacturer BCI Burke, escalating antitrust scrutiny of acquisitions in highly concentrated industries.
The legal challenge targets a proposed transaction in which PlayPower, owned by Platinum Equity, would acquire BCI Burke from Bertram Capital. Regulators contend that combining two major suppliers of commercial outdoor playground equipment would weaken competition, potentially increasing costs for schools, municipalities and other institutional buyers.
The lawsuit, filed in federal court in California, could also have broader consequences for private equity firms that pursue growth through successive acquisitions, according to reporting by Dan Primack of Axios on Tuesday.
The case brings renewed attention to federal merger guidelines introduced during the Biden administration, particularly provisions addressing transactions involving companies that have expanded through multiple acquisitions.
Regulators Cite Market Concentration
The FTC alleges that the proposed acquisition would further consolidate an industry already dominated by a small number of manufacturers.
According to the agency’s complaint, 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 competition between the two manufacturers could result in higher equipment prices, reduced product development and diminished service quality.
The potential financial impact would extend to public institutions, including school districts and local governments, which regularly invest taxpayer funds in playground infrastructure.
The FTC also contends that Burke has been gaining market share from PlayPower, making the proposed acquisition particularly concerning from a competitive standpoint.
Colorado Attorney General Phil Weiser criticized the transaction, arguing that PlayPower was seeking to acquire a competitor rather than respond to its growing market presence through improved commercial performance, according to Axios.
The FTC’s complaint further alleges that the transaction could adversely affect independent sales representatives through reduced commissions or less favorable business arrangements.
Private Equity Acquisition Strategies Face Scrutiny
Beyond the immediate competitive implications, the lawsuit could become an important test of how U.S. regulators evaluate acquisition-driven expansion strategies.
The merger guidelines adopted under the Biden administration allow competition authorities to examine whether individual transactions form part of a broader acquisition strategy that may progressively reduce market competition.
PlayPower has expanded its business through several acquisitions over recent decades, including its purchase of Playworld in 2016.
However, Axios noted that those earlier transactions occurred before Platinum Equity acquired ownership of the company, creating a distinction between PlayPower’s historical consolidation and its current private equity backing.
The case also raises questions about how regulators apply merger guidelines to industries where a limited number of companies already account for the overwhelming majority of sales.
Although the legal challenge concerns playground equipment, its outcome could influence future transactions involving private equity-backed businesses operating in similarly concentrated markets.
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PlayPower Defends Proposed Acquisition
PlayPower has rejected the suggestion that its acquisition of Burke would undermine competition.
In comments provided to Axios, a company spokesperson argued that the combination would strengthen the merged business and improve its ability to compete in an international market.
The company described the two manufacturers as complementary and maintained that the transaction would create a stronger U.S. enterprise.
PlayPower also expressed confidence in the proposed deal and indicated that it would continue engaging with the FTC in pursuit of a resolution.
The competing positions highlight a central dispute in the case: whether the acquisition would create a more effective competitor or remove an important source of pricing and product competition.
Regulators maintain that the loss of direct rivalry between PlayPower and Burke would outweigh the potential benefits claimed by the companies.
Federal-State Cooperation Signals Broader Enforcement Stakes
The lawsuit is also notable for the cooperation between federal antitrust officials and a bipartisan coalition of state attorneys general during President Donald Trump’s second administration.
The participating states are Arizona, California, Colorado, Illinois, Nevada, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Washington and Wisconsin.
Axios reported that such coordinated federal-state antitrust actions have been relatively uncommon during the current administration.
However, an FTC spokesperson told Axios that the agency has previously worked alongside state authorities, citing a 2025 antitrust challenge involving private equity firm GTCR’s proposed acquisition of Surmodics.
The FTC voted 2-0 to authorize legal action against the PlayPower transaction. The complaint, filed in the U.S. District Court for the Northern District of California, seeks to prevent the acquisition from proceeding.
Source: Axios
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