Mattel to buy Mega Brands

Mattel, Inc. is acquiring Mega Brands Inc. for US$460 million in a move to . The acquisition aims to push Mattel's global growth strategy of building upon its world-class portfolio of brands by expanding into two of the fastest-growing toy categories. Mega Brands, a family of leading global brands, is the No. 2 player in the $4-billion construction building sets with its MEGA BLOKS brand as well as a competitor in the $2-billion arts & crafts category. 

"A key pillar of our global growth strategy is the strategic acquisition of brands that will both benefit from our scale and help extend our reach into new and growing categories," said Bryan G. Stockton, Mattel Chairman and CEO. The construction play pattern is popular around the world and has had one of the fastest growth rates over the past three years. Mattel's world-class portfolio of brands will complement Mega Brands' flagship Mega Bloks and existing licensed brands,  

Mega Brands has estimated net sales for FY 2013 of US$405 million. It ranks among the top 15 toy companies globally in terms of sales, according to statistics published by the NPD in 2013. In 2013, it achieved record sales of preschool construction toys.

Founded and based in Montreal, Mega Brands has approximately 1,700 employees in 17 countries. Mattel plans to maintain Mega Brands' expertise in manufacturing, both in Montreal and Tennessee, and plans to maintain the Mega Brands headquarters in Montreal.