updated - October 29, 2020 Thursday EDT
Mattel's $460 million acquisition of Mega Brands follows low numbers during the past holiday shopping season a press release on Mattel's website reported Friday.
The move is expected to help Mattel make significance progress on its expansion efforts into two different groups the press release reported.
"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 Mattel CEO Bryan Stockton, in a statement. "The construction play pattern is popular, universal and has one of the fastest growth rates over the past three years."
The transaction supplements Mega Brand's partner Mega Bloks, and other current products including Halo, Skylander, Call of Duty, Assassin's Creed, Power Rangers, Hello Kitty, and SpongeBob Squarepants the press release reported.
The deal also expands Mega's art entities such as Rose Art, and Board Dudes while opening the doors for development of its arts and crafts category internationally the press release reported.
"At Mattel, we have followed a consistent philosophy on acquisitions - we seek to create value by building on the foundations of the great businesses we have acquired while retaining and nurturing the core values, talents and unique capabilities that made them great," Stockton said in a statement. "We will approach our new brands and colleagues at MEGA Brands with great respect for what they have built and enthusiasm for what we can build together."
"MEGA Brands has built leading positions in large, growing categories by providing engaging creative experiences for children and families through innovative, well-designed and high-quality products, and Mattel is the ideal partner to take our brands to the next level," Marc Bertrand, president and CEO at Mega Brands said in a statement. "We are confident Mattel's scale and global platform spanning 150 markets - combined with the expertise of our people in the construction and arts & crafts categories - will create tremendous growth opportunities for our brands."
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