Spin Master buying toymaker Melissa & Doug

Toronto-based plastic toymaker Spin Master Corp. is expanding its footprint in the wooden toy sector by buying U.S.-based toy company Melissa & Doug for US$950 million in cash.

“As a trusted brand of early childhood toys with an evergreen portfolio, Melissa & Doug will expand Spin Master’s presence in new categories, providing immediate revenue growth, broader reach in all retail channels and market coverage,” Spin Master president and CEO Max Rangel said in a news release. “The addition of Melissa & Doug is highly complementary and connects with our strategic vision to reimagine everyday play, providing a compelling platform for long-term growth through innovation, while also meeting the changing demands of children and parents of the future.”

The acquisition will be an important portfolio brand within Spin Master’s infant, preschool toddler group, Rangel added.

Wilton, Conn.-based company, Melissa & Doug, will continue to operate as a stand-alone business with Fernando Merce as its CEO.

Spin Master is best known for its Paw Patrol, Bakugan, Hatchimals, Rubik’s Cube, and Gund brands.