Mattel to Purchase MEGA Brands

The business of construction block toys is heating up! Mattel has announced the signing of an agreement for the purchase of MEGA Brands for $460 million (total cash for equity and retirement of debt). MEGA Brands produces MEGA BLOKS, which places it as the number 2 company in the construction building sets category. Other businesses of MEGA Brands include Rose Art, MEGA Puzzles, and Board Dudes.

Construction toys have been a growing force in the toy industry. Lego recently surpassed Hasbro as the world’s second largest toy maker. Meanwhile, recent entries in to the category include Hasbro’s Kre-O line and Spin Master’s Ionix.

In a conference call following-up on the company’s announcement, Mattel’s CEO emphasized international distribution and advertising as two areas in which Mattel can assist MEGA Brands’ growth.

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