Mattel, Inc. (NASDAQ: MAT) announced today that it has completed the acquisition of MEGA Brands Inc. (TSX: MB, MB.WT, MB.NT), through a wholly-owned subsidiary of Mattel, Inc., for approximately US$460 million. MEGA Brands, a trusted family of leading global brands founded and based in Montreal, is the No. 2 player in the $4-billion construction building sets category 1 with its MEGA BLOKS ® brand as well as a competitor in the $2-billion arts & crafts category 2.
This acquisition represents one of the key avenues for achieving Mattel’s global growth strategy by entering strategic categories that can benefit from the brands, distribution reach and marketing strength of the world’s largest toy maker.
“We are pleased to welcome MEGA Brands into the Mattel family of companies and believe the opportunities for global expansion and product innovation created by this acquisition will be one of the key drivers of our global growth strategy in 2014 and beyond,” said Bryan G. Stockton, Mattel Chairman and Chief Executive Officer. “MEGA Brands provides Mattel meaningful and immediate exposure into two of the fastest growing categories in the toy aisle today and we plan to utilize our world-class portfolio of brands, markets and customers to build an even stronger and more profitable player in the construction as well as arts and crafts categories.”
Mattel’s portfolio of brands will complement MEGA Brands flagship MEGA BLOKS ® construction sets and existing licensed brands, and creates the opportunity to grow the MEGA Brands sizable arts & crafts business, with brands including Rose Art ® and Board Dudes ®.Geoff Massingberd, who Mattel named Chairman and President of MEGA Brands, assumes full leadership responsibility for MEGA Brands today. A native of Canada, Geoff began his career with Mattel in 1997 as the Vice President of Sales for Canada, and transitioned to leading Mattel’s International divisions in Canada, Australia, New Zealand, Asia and Latin America, and eventually the entire International division in his most recent role as Executive Vice President, International for Mattel.