Thomas and Friends Join Barbie

World's leading toy maker Mattel is to buy HIT Entertainment, the maker of Thomas the Tank for $680m in cash. HIT Entertainment is owned by a consortium led by investment firm Apax Partners.

HIT has more than $180m of revenues. Mattel currently markets many Thomas & Friends toy products under a licence that extends to 2014. Its global sales of Thomas & Friends toys are more than $150m.

Mattel owns such popular brands as Barbie, Hot Wheels, Fisher-Price and the American Girl.