Mega Brands
On June 15, 2006, following the acquisition of several brand names not associated with construction brick toys, the company again changed its name, this time from Mega Bloks Inc. to Mega Brands Inc.[6] with Rose Art Industries, Inc. being renamed Mega Brands America, Inc.[8]
After 23 consecutive years of growing sales and profit, Mega lost $458 million in 2008. Heading towards bankruptcy, the company refinanced. Shares were consolidated 1-for-20, with Fairfax Financial becoming a major partner in the recapitalization.[6]
Rose Art was placed on the market in March 2008 as a result of inquiries from the previous owners and others.[9] The former owners of Rose Art, Jeffrey and Lawrence Rosen, offered to purchase it back in April 2008.[10] They then sued company management for insider trading in September 2008, alleging shares were sold prior to the Magnetix recall.[11] Rose Art's base operation was shut down in New Jersey, and in 2010 the company moved its stationery and activities division, with some key employees, to Irvine, California, under new executive Thomas Prichard, a former executive at Crayola, Pixar, and Hasbro. The subsidiary was not sold, and was reintegrated into Mega operations by 2012.[6]
On February 28, 2014, it was announced that Mattel, Inc. would acquire Mega Brands Inc. for approximately US$450 million.[12] It became a wholly owned subsidiary of Mattel as of April 20, 2014.[13] Prior to the purchase, Mega and Mattel were partners in adding Mattel brands to Mega "Worlds" plus a line for Mattel's American Girl that competes with Lego's Friends line.[3]
Three years later, on February 10, 2017, Mattel announced that it was introducing Mega Construx,[14] a new sub-brand of construction sets designed for children four and up as well as adult collectors. Construx's first license property line was Pokémon, launched in mid-2017.[3]
In March 2021, LaRose Industries, the company founded by Lawrence Rosen in 2008, announced it purchased the RoseArt brand from Mattel. The purchase reunites the RoseArt brand with the Rosen family.[15]
