In a deal worth roughly $460 million, Mattel has agreed to acquire the Canada-based toy company MEGA Brands, it was announced Friday.

Mattel will fund the purchase through a combination of new debt and cash, with the deal expected to close in the second quarter.

The deal encompasses MEGA Brand’s sub-brands, including its construction toy range MEGA Bloks.

“A key pillar of our growth strategy is the strategic acquisition of brands that will both benefit from our scale and help extend our reach into new and growing categories,” says Bryan G. Stockton, chairman and chief executive officer, Mattel. “The construction play pattern is popular, universal and has had one of the fastest growth rates over the past three years. We look forward to helping MEGA Brands accelerate its global growth, providing more choices for more children and their families.”

Mattel will also look to leverage MEGA Brands’ arts and craft business, which includes brands Rose Art and Board Dudes.

Mega Brands, located in Montreal, is construction toy-centered company that offers a broad assortment of craft and activity products for boys and girls of all ages. Although based in North America, the company’s distribution network spans to more than 100 countries worldwide. The company has approximately 1,700 employees, and estimated net sales for FY 2013 of $405 million, ranking it in the top 15 toy companies globally (source: The NPD Group).

“MEGA brands has built leading positions in large, growing categories by providing engaging creative experiences for children and families through innovative, well-designed and high-quality products, and Mattel is the ideal partner to take our brands to the next level,” says Marc Bertrand, president and chief executive officer, MEGA Brands. “We are confident Mattel’s scale and global platform spanning 150 markets–combined with expertise of our people in construction and arts and crafts categories–will create tremendous growth opportunities for brands.”

Mega Brands is a licensee for multiple properties such as Hello Kitty and Barbie for its popular girl’s construction line, Skylanders, Power Rangers Mega Force, Hot Wheels, Halo and many more.