MGA Entertainment has begun negotiations to merge with Bavaria-based toyco Zapf Creation, which is best known for developing and manufacturing baby dolls. 

MGA already holds a majority stake in Zapf and approached the German company with a merger proposal earlier this week, according to a release. The deal is expected to close in spring 2024 once the two leadership teams have worked out some finer details.

The toycos have been business partners for 17 years, since MGA acquired a minority stake (19%) in Zapf in 2006. As part of that initial deal, MGA began using Zapf’s distribution and sales channels to sell its products to retailers across Europe. Zapf has similarly been able to expand the retail footprint for its dolls overseas in North and South America through MGA’s network. 

The scope of the relationship between the two companies expanded beyond sales earlier this year, with MGA Entertainment producing a series of 18 x five-minute CG-animated shorts based on Zapf’s 30-year-old BABY born doll brand that premiered globally on YouTube and also on Kidoodle.TV in the US this past August. 

Since opening its doors in 1932, Zapf has launched successful toy lines that include Baby Annabell (plush) and the cartoon-inspired Chou Chou brand. These assets will join MGA brands such as Miniverse (collectibles), Fluffie Stuffiez (plush) and Rainbow High (dolls) in a much bigger combined portfolio when the merger closes. 

Photo of BABY born series courtesy of MGA Entertainment