The founding family of Canadian toy maker Mega Brands Inc. will receive more than $74 million if the company’s sale to global giant Mattel Inc. is approved by shareholders at the end of the month, according to a regulatory filing.
Chairman Victor Bertrand, who started the company nearly 50 years ago, would receive $41 million for his 2.3 million shares. Chief executive Marc Bertrand would collect $18.4 million, while chief innovation officer Vic Bertrand Jr. would get $14.9 million.
The Montreal-based company’s shareholders will vote on April 23 on a friendly takeover offer from Mattel that is expected to close around June.
Mattel Inc. made the offer to purchase Mega Brands – which has the world’s No. 2 line of construction sets after Lego – in early January, in a deal valued at US$460 million, including debt that the El Segundo, Calif.-based Mattel will assume or repay.
According to a March 2 statement from Mattel – the maker of Barbie dolls, Hot Wheels cars, and a variety of other toys – Mega Brands will help it expand in two of the fastest-growing product segments: construction sets and arts and crafts.
In addition to its original Mega Bloks franchise, Mega Brands offers arts and craft products under the Rose Art and other brands, which will be added to Mattel’s own offerings in that product category.
Mattel said it plans to keep the Mega Brands head office in Montreal and to invest in its manufacturing operations. As of 2013, Mega Brands was molding more than half of its toys in Montreal, where approximately 1,200 employees work in an 830,000-square-foot facility. The company reported sales of about US$405 million in 2013.