Article: ZANY BRAINY BUY USES COOL LOGIC OWNERS EXPECT BANKRUPT CHAIN WILL RETAIN ITS STRENGTH AT CORE.(Business)

Byline: Gregory J. Wilcox Staff Writer

Waterton Management LLC's $115 million buyout of specialty toy retailer Zany Brainy Inc. is a no-brainer, analysts said Wednesday.

The Los Angeles investment firm bought the financially troubled company on Tuesday but the deal must first be approved by the U.S. Bankruptcy Court and a hearing has been set for Aug. 10. Both parties expect the deal to close before Labor Day.

Jim Silver, publisher of the Toy Book, a New York City-based trade publication that tracks the segment, said that it's a plus Waterton bought the company because it is familiar with the toy industry.

``Waterton is very involved ...

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