MATTEL BUYS NO. 3 TOYMAKER TYCO.Byline: Linda A. Johnson Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Barbie's getting some new wheels to cruise around town in this Christmas. Barbie-maker Mattel Inc. announced Monday it would acquire Tyco Toys Tyco Toys is a division of the Mattel toy company. History Mantua Metal Products was a Woodbury Heights, New Jersey, metalworks business founded in 1926 by John Tyler and family. Inc., the manufacturer of Matchbox cars, in a deal valued at $755 million that will enhance Mattel's domination in the toy industry and keep rival Hasbro at a distant second. Tyco, which also makes the Sesame Street line of toys and the View-Master and Magna Doodle brands, is the country's No. 3 toy manufacturer. The Mount Laurel, N.J.-based company has had financial troubles, losing $27.2 million last year. But executives of El Segundo-based Mattel lauded Tyco's restructuring plan implemented in 1995, which refocused its core product lines and streamlined operations. Under the deal, Tyco common shareholders will receive Mattel stock equivalent to $12.50 for each Tyco share. That's a 78 percent premium for Tyco shareholders, with Tyco stock having closed Friday at $7 on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . On Monday, Tyco shares rose $4.50 to $11.50, while Mattel stock fell 75 cents to $29.87-1/2, also on the NYSE NYSE See: New York Stock Exchange . Jill E. Barad, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Mattel and the highest-ranking woman in the toy industry, will become chief executive of the combined company. Spokesmen for both companies said it is too soon to discuss details of layoffs and other changes that will result from the deal, including what will happen to Tyco CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President Gary Baughman. Mattel earned $357.8 million on 1995 sales of $3.6 billion. It has 25,000 employees, 6,000 of them in the United States. Tyco employs 1,200 U.S. workers and another 1,000 overseas. The two companies are expecting combined sales of $5 billion. The deal comes less than a year after Mattel, the world's largest toy maker, was spurned spurn v. spurned, spurn·ing, spurns v.tr. 1. To reject disdainfully or contemptuously; scorn. See Synonyms at refuse1. 2. To kick at or tread on disdainfully. v. in its $5.2 billion offer to buy Hasbro. CAPTION(S): Photo Photo: (Color) Jill E. Barad CEO of joint companies |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion