Mattel Inc., the maker of Barbie dolls and Hot Wheels, is buying Fisher-Price Inc. in a $1 billion deal that would create the world's biggest toy company.
The merger, announced Thursday, is subject to shareholder and government approval.Fisher-Price is a leading maker of educational toys for preschoolers and baby gear ranging from rattles to potty seats. Mattel has concentrated on toys for older children.
"They're not buying competition. They're buying broader share of market," said Robert McCoy, associate publisher of the trade magazine Toy & Hobby World.
Fisher-Price, based in East Aurora, reported 1992 revenue of $694 million. Mattel is headquartered in El Segundo, Calif., and reported 1992 sales of $1.85 billion.
Based on those figures, the combination would eclipse Pawtucket, R.I.-based Hasbro Inc., the maker of GI Joe, Cabbage Patch Kids and Tinkertoys. Hasbro had 1992 sales of about $2.54 billion.