Shareholders of Canadian toy maker Mega Brands Inc. have overwhelmingly approved a US$460 million friendly takeover by American giant Mattel Inc.
A total of 99.96 per cent of Mega Brands shareholders who voted endorsed the deal, well in excess of the two-thirds requirement.
Regulatory approval in the United States has already been received.
The founding family of Montreal-based Mega Brands will receive more than $74 million in the company’s sale. Chairman Victor Bertrand, who started the company nearly 50 years ago, will receive $41 million for his 2.3 million shares. Chief executive Marc Bertrand will collect $18.4 million, while chief innovation officer Vic Bertrand Jr. will get $14.9 million.
El Segundo, Calif.-based Mattel made the offer to purchase Mega Brands – which has the world’s No. 2 line of construction sets after Lego – in early January.
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.