Canada's Spin Master toys buying U.S. rival Melissa & Doug for $950M

Spin Master Corp. announced a deal on Wednesday to buy U.S.-based toy company Melissa & Doug for $950 million US.

Spin Master chief executive Max Rangel said Melissa & Doug is a trusted brand of early childhood toys with an evergreen portfolio that will expand the company's reach and help grow revenue.

"What excites us so much about Melissa & Doug is the power of their brand, their deep knowledge in developmental play and their passion for creativity, imagination and sustainability," Rangel said in a statement.

"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."

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

It said the deal to buy Melissa & Doug will add a trusted brand of high-quality open-ended, creative and developmental toys that is relevant for parents seeking sustainable wooden toys and screen-free play.

WATCH |CBC report highlights upstart Spin Master's big growth plansin 1998:

The Spin Master Toys story

25 years ago

Duration 2:58

A Toronto toy company that got its start with a simple creation, the Earth Buddy, hopes for a hit with Air Hogs in 1998.

Spin Master said it plans to finance the purchase price with about $450 million cash on hand and $500 million in new debt.

The agreement also includes up to an additional $150 million US that is subject to achieving certain financial targets for 2024 and 2025.

Earlier this month, Spin Master announced an agreement for the global toy licence for Dora, the new reboot of the Dora the Explorer franchise coming next year.

The new Dora toy collection is expected to launch in the fall of 2024 and include figures, dolls, playsets, vehicles, plush, role-play, games and puzzles, inspired by Dora, her companion Boots and other characters.