Hong Kong’s ZURU Toys is expanding into the construction category with its acquisition of Tytan Toys. 

Under the agreement, ZURU will take on all of Tytan’s product lines and existing licensing agreements for an undisclosed amount. The Kansas-based toyco is best known for its range of magnetic building tile sets, which are distributed in more than 3,900 Walmart stores worldwide and in 5,000-plus US classrooms. But it also produces building blocks and construction toy lines. 

Tytan isn’t the only player in this magnetic toy category. Competitors such as Magna-Tiles, PicassoTiles, FNJO and Connetix are all fighting for slices of market share with nearly identical products. To stand out, Tytan inked its first deal with Disney two years ago to produce licensed magnetic building sets featuring Disney princesses, Disney Junior characters, Frozen and Lilo & Stitch.

ZURU CEO Nick Mowbray says his company’s acquisition of Tytan is part of an ongoing strategy to diversify its products and invest in the construction toys segment, which it has earmarked as a category with high-growth potential. ZURU also plans to leverage its existing network of global distributors and factories to accelerate the expansion of Tytan’s magnetic tile lines into new markets. 

This network will be put to the test this week at the LA Fall Preview in El Segundo, where ZURU will showcase Tytan’s products for the first time to potential retailers, distributors and licensors. 

Other brands in ZURU’s portfolio include its Smashers range of surprise eggs, OOSH slime, Metal Machines vehicles and Fuggler plush toys.