TOYS G.I. Joe Lands On Boardwalk

When toy-truck maker Tonka bought Kenner Parker Toys in 1987, the company added such venerable products as Monopoly and Play-Doh to its lineup. But Tonka, the third largest U.S. toymaker, also took on a staggering debt from the $674 million sale. The Minnesota-based company's burdens grew worse with the recession, which coincided with a dearth of successful new Tonka products. Last week the toymaker decided to seek help from the big kid on the block. Hasbro (1990 sales: more than $1 billion), the largest U.S. toymaker, will acquire Tonka's stock and debt in a deal worth about $500 million. Hasbro, which makes G.I. Joe, Cabbage Patch dolls and Playskool toys, earned $61 million in the first three quarters of 1990, while Tonka lost $25 million in the same period.