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/ Source: Reuters
Mattel Inc., the world's No. 1 toymaker, said it agreed to buy Canada's Mega Brands Inc. for about $460 million, including debt, to expand its construction and arts and crafts offerings.
"The construction play pattern is popular, universal and has had one of the fastest growth rates over the past three years," Mattel's Chief Executive Bryan Stockton said in a statement.
Montreal-based Mega Brands makes construction toys and arts and crafts under brands such as MEGA Bloks, Rose Art and MEGA puzzles. The company said it has estimated net sales of $405 million in 2013.
Construction toys and other traditional toys have become popular among parents seeking to limit the amount of time their children spend using iPads and other electronics with screens.
Both Mattel and its U.S.-based rival Hasbro Inc. posted lower-than-expected results in the fourth quarter.
In contrast, Denmark's Lego, mostly known for its colorful bricks, increased sales by 10 percent in a sluggish global toy market in 2013.