EL SEGUNDO, Calif., Oct. 24 (UPI) -- U.S. toymaker Mattel Inc. said Monday it would buy HIT Entertainment for $680 million in cash, effectively giving Thomas the Tank Engine a home in California.
Mattel is buying the company that owns the Thomas & Friends franchise from a consortium led by Apax Partners funds, the company said in a statement.
"Mattel is the right home for Thomas & Friends. This powerhouse brand is joining the ranks of such iconic brands as Barbie, Hot Wheels, Fisher-Price and American Girl," said Robert Eckert, chairman and chief executive officer of Mattel.
Thomas & Friends has been a top seller for its age group -- kids at the toddler stage and perhaps a bit older -- "routinely," Eckert said.
"This transaction will marry Mattel's global marketing, distribution and brand management capabilities with HIT Entertainment's global programming and licensing expertise to accelerate growth of the combined portfolio," Eckert added.
Mattel already markets many Thomas products under a license from HIT. Mattel's sales of HIT die-cast and plastics products are approximately $150 million annually.
With the HIT purchase, Mattel will be able to "reunite" die-cast plastic and wood versions of the Thomas line.
"Historically, the sales of wood-based toys have been around half the size of the plastic and die-cast business," Mattel said.
