Hasbro to Buy Two Russ Berrie Units

Hasbro Inc., maker of Mr. Potato Head and G.I. Joe dolls, has agreed in principle to acquire Cleveland-based Cap Toys Inc. and Petaluma-based OddzOn Products Inc. from Russ Berrie & Co. for $166 million, the companies said. Cap Toys markets dolls, novelty toys and candy. OddzOn is best known for its Koosh balls. “Our decision to sell is based on a strategic reevaluation of our business,” said Russell Berrie, chairman and CEO of Oakland, N.J.-based Russ Berrie. “We have decided to focus our efforts on our greatest strength, the gift industry.” The deal is expected to close in the first quarter or early in the second quarter, subject to a definitive contract and regulatory approvals. Shares of New York-based Hasbro gained 75 cents to close at $42.25 on the American Stock Exchange. Russ Berrie shares rose 37.5 cents to close at $21.125 on the New York Stock Exchange.