Milton Levine, a distributor of mail-order toys, was attending a summer picnic with friends when an army of ants decided to wreak havoc on the party. The ant invasion sparked an idea for Levine, who later founded Westlake Village-based Uncle Milton Industries Inc. and created Ant Farm, the first 6- by 9-inch ant habitat to be mass produced for consumers. Since that eventful picnic more than 55 years ago, Uncle Milton has sold more than 20 million Ant Farm habitats worldwide. The company is a leader in the science & nature toy category and sells its products at major retail stores such as Toys ‘R’ Us and Target as well as at several thousand specialty toy stores. “I thought it would sell for maybe two years,” Levine said of Ant Farm, in a 2002 interview with Fortune Small Business magazine. Levine died in January. Five months later, private equity firm Transom Capital Group acquired the company for an undisclosed amount. “Uncle Milton represents a cornerstone acquisition for our portfolio and offers a platform from which we hope to expand our presence in the industry,” Ken Firtel, managing director of Transom Capital, said in a June 9 news release announcing the sale. “The founders, the Levine family, have safeguarded the company’s sterling reputation for over half a century by introducing fun and educational toys consistent with the brand’s focus. We believe that Transom Capital can add a level of operational sophistication that will improve its performance both from a top and bottom line perspective.” Uncle Milton President Frank Adler said Levine’s vision for the company — to get kids out of the house and into nature and to produce great toys — remains intact under the new ownership. From space missions to wilderness adventures, Uncle Milton products cover a broad territory in the niche of science exploration. The company has developed its brand as well as several licensing partnerships that cater to the science game category. It currently holds licensing agreements with brands such as Star Wars and National Geographic, which have assisted in building the brand’s acclaim and expanding its offerings. Christine Anderson, the company’s chief financial officer and chief operations officer, said Uncle Milton’s sales are up 20 percent this year. She declined to provide specific revenue figures. With new product launches and a new partnership with outdoor equipment company John Deere, the company’s financial outlook for 2012 is bright and revenues are expected to increase by 30 percent, Anderson said. At Uncle Milton, the creative process is an in-house operation, consisting of frequent “brainstorm” sessions with members of the staff. In fact, most of the company’s products stem from the staff’s past experiences or observations in nature. “It’s exciting to create an idea out of thin air,” Adler said. “It’s the fun part of the job.” Uncle Milton also has benefited from its relationships with inventors and creative minds in the industry. Most recently, Uncle Milton partnered with Will Wright, the creator of The Sims, on a multi-year licensing agreement for Ant Farm Revolution, the newest product under the Ant Farm brand. The most recent version of the toy includes a cylindrical gel-filled case, allowing consumers to watch ants create their own 3-D habitat. The product also features an integrated LED light and projecting lens that illuminates from within and projects ant shadows on walls and ceilings. It sells for $39.99.
