Tyco Toys

Tyco Toys
Company type	Private (1926–1970), Subsidiary (1970–1997), Public (1986–1997)
Industry	Toy manufacturing
Predecessor	Mantua Metal Products
Founded	1926
Founder	John Tyler, Jim Thomas
Defunct	1997
Fate	Acquired by Mattel
Headquarters	Woodbury Heights, New Jersey (original), later Mount Laurel, New Jersey, United States
Area served	Worldwide
Key people	John Tyler, Norman Tyler, Richard Grey, Benson Seltzer, Gary Baughman
Products	Model trains, slot cars, radio-controlled vehicles, dolls, stereoscopes, magnetic drawing boards
Parent	Sara Lee Corporation (1970–1981), Savoy Industries (1981–1986), Independent (1986–1997), Mattel (1997–)

Tyco Toys was an American toy company established in 1926 by John Tyler, with its main office located in Woodbury Heights, New Jersey. The firm specialized in a diverse range of products, including model trains, slot cars, radio-controlled vehicles, dolls, stereoscopes, and magnetic drawing boards. Among its prominent brands were View-Master, Magna Doodle, Sesame Street toys, and Matchbox, the latter acquired in 1992.

Initially operating under the name Mantua Metal Products, Tyco remained privately held until 1970 when it became part of the Sara Lee Corporation. The company grew through acquisitions such as Ideal Toy Company in 1989 and Illco in 1992. In 1997, Mattel purchased Tyco Toys for $755 million, incorporating its product lines and market presence into Mattel’s offerings. Following this acquisition, Mattel unified advertising strategies to enhance brand management and capitalize on strategic collaborations.

Tyco’s commercial approach emphasized innovation in entertainment toys and the expansion of international operations through subsidiaries. This acquisition bolstered Mattel’s position in the toy market by diversifying its product range and expanding its consumer base.

Origins of Tyco

The enterprise originated as Mantua Metal Products in 1926, founded by John Tyler alongside Jim Thomas in Mantua, New Jersey. Initially, it manufactured model boats and electric motors. By 1937, the company had broadened its scope to include ready-to-run HO scale model trains. During World War II, production pivoted to precision instruments for the U.S. military, earning the Army-Navy ‘E’ Award in 1945. After the war ended, the firm resumed manufacturing model trains and began integrating plastic parts during the 1950s.

In 1953, John Tyler partnered with marketing director Milt Grey to create Tyler Manufacturing Company, aiming at younger consumers with ready-to-run trains distributed through discount and toy retailers. This line competed with established brands such as Lionel and Marx. By 1957, the train products adopted the Tyco brand name and expanded into HO scale slot car sets by 1963.

The year 1967 marked the merger of Mantua and Tyler Manufacturing into Tyco Industries, with Norman Tyler appointed president. During the 1970s, Tyco shifted focus toward mass-market consumer goods.

Changes in Corporate Ownership

In 1970, Consolidated Foods (later known as Sara Lee Corporation) acquired the company, relocating manufacturing operations from New Jersey to Hong Kong while producing more sophisticated train models. By 1972, the Mantua brand was phased out in favor of Tyco Industries as headquarters moved to Mount Laurel, New Jersey. Facing financial challenges, new leadership including Richard Grey as president was installed.

Throughout the 1970s, Tyco experienced declining sales due to waning interest in model trains and increasing demand for electronic toys. To counter this trend, the company expanded its product range. In 1977, Norman Tyler repurchased the original factory and reestablished Mantua as an independent business.

In 1981, Savoy Industries under Benson Seltzer acquired Tyco from Consolidated for $18.6 million. While Richard Grey concentrated on toy development, Seltzer aimed to evolve Tyco into a diversified conglomerate. To offset declining train revenues, Tyco introduced the US-1 Trucking electric truck series; although initially popular, consumer interest soon waned. By 1982, the company reduced emphasis on H0-scale trains.

In 1983, Tyco debuted Cliff Hangers.

By 1984, Tyco ventured into construction toys with Super Blocks—interlocking bricks designed to be compatible with Lego and Duplo following expiration of Lego’s fundamental patent in 1978. Lego initiated legal action against Tyco to cease production but was unsuccessful in 1987; however, certain limitations on Super Blocks’ marketing and manufacturing were enforced.

Public company

Tyco entered the public market on February 20, 1986, reporting revenues of $87.7 million for that year. The company revitalized its RC brand by collaborating with the Japanese firm Taiyo to launch more advanced radio-controlled vehicles, expanding its offerings from five models in 1986 to an extensive 22-page catalog of RC toys by 1988. In 1987, Tyco shifted its emphasis away from trucking and model trains toward new toy categories, introducing Tyco Super Dough as a competitor to Play-Doh and unveiling the dinosaur-themed Dino-Riders line in 1988, which was supported by an accompanying animated series.

In May 1989, Tyco expanded its portfolio through the acquisition of View-Master Ideal Group, incorporating View-Master stereoscopes, Magna Doodle magnetic drawing toys, and Ideal Nursery dolls. That year, the company’s revenue climbed to $384 million. Between 1989 and 1991, Tyco collaborated with Sega Toys to distribute Pocket Power miniature toys, including a girls’ collection named Pocket Pretties. Their musical product range featured electronic instruments such as the Tyco Hot Lixx guitar and Hot Keyz keytar.

Following the company’s transition to a public entity, founder Seltzer assumed the role of chairman and maintained board control alongside family members. However, his personal investments and use of corporate funds for private acquisitions triggered shareholder lawsuits. By 1990, conflicts reached a climax; Seltzer and his sons resigned in July 1991, which subsequently increased Tyco’s market value by 11%. Richard Grey was appointed president, CEO, and chairman.

During the early 1990s, Tyco broadened its global reach through Tyco International by establishing subsidiaries throughout Europe, North America, and Australia. In 1990, it acquired Stanley Cohen’s Playtime Toys to serve as a direct import division. In May 1992, Tyco purchased the Matchbox brand for $106 million, strengthening its foothold in markets such as England and Germany. The acquisition of Illco Toy Company brought Sesame Street-themed products into its lineup and resulted in a decade-long licensing agreement with Children’s Television Workshop. That same year, Tyco consolidated domestic packaging operations near Portland, Oregon, closing its Moorestown facility. Sales reached $769 million in 1992. Mid-decade saw the company relocate its headquarters to Mt. Laurel, New Jersey.

Throughout the 1990s, Tyco diversified its offerings by adding airplanes and popular dolls like the Quints—developed by Bernard Loomis—which generated $20 million in sales within ten months after launch. The company also leveraged Disney’s Little Mermaid dolls in 1991 and became the first licensee for Warner Bros.’ Looney Tunes characters in 1993. Additionally, Tyco introduced the Power Plug accessory compatible with Sega Genesis and Super Nintendo controllers.

After exiting the model train segment post-1993, new president Gary Baughman restructured Tyco by emphasizing classic toy lines and reducing dependency on television and movie licenses. The company raised $96 million through stock offerings to pay down debt but remained third in industry rankings behind Mattel and Hasbro with $709.1 million in revenue in 1995. Its international operations were centralized in Belgium but accounted for less than one-quarter of total sales. By 1996, Tyco had endured three consecutive years of losses totaling $135.5 million.

Tyco’s Sesame Street product line experienced a dramatic surge following the July 1996 launch of Tickle Me Elmo. Initially projected to sell 400,000 units, demand skyrocketed to one million units by December, prompting ramped-up production across four factories in China ahead of the holiday season.

Acquisition by Mattel

In November 1996, Mattel revealed its plan to acquire Tyco, then ranked as the third-largest toy manufacturer in the United States, having generated $709 million in revenue the prior year. The transaction, valued at $755 million and receiving FTC approval in March 1997, merged Mattel's extensive distribution capabilities with Tyco's wide-ranging product lineup, resulting in a combined 19% stake of the $13 billion American toy market. Following the merger, Mattel implemented workforce reductions amounting to nearly 10%, equating to approximately 2,700 positions, alongside incurring a restructuring expense of $275 million.

Tyco’s well-known brands such as Sesame Street, Magna Doodle, and View-Master were absorbed into Mattel’s Fisher-Price division. Meanwhile, Matchbox, Tyco Electric Racing, and Tyco Radio Control lines were integrated into the Wheels division, joining Hot Wheels. By 2005, operations at Tyco’s Mount Laurel facility were discontinued, with functions consolidated at Mattel’s headquarters in El Segundo.

Mantua Industries continued its operations until October 2001 when its model railroad segment was divested to Model Power. The Mantua Classics brand persisted through licensing agreements until Lionel Corporation acquired it in 2018.

On February 23, 2019, Terry Flynn declared that Harden Creek Slot Cars, LLC had secured registration of the Tyco trademark. This entity also holds ownership of the Life Like slot car brand.

In popular culture

The Mutator R/C car from Tyco gained notable exposure in the 1997 family movie Home Alone 3, where antagonists used it to covertly transport a classified device into North Korea.

During the 1980s, Tyco’s Garfield-themed telephone became an environmental emblem after hundreds were found washed ashore in Brittany, France, more than three decades later. In 2019, environmental activists traced the origin to a lost shipping container that had spilled phones into the ocean, underscoring unforeseen impacts associated with product logistics.

External links

Tyco Collectors – an archive maintained by vintage toy enthusiasts documenting specifications and photographs of Tyco R/C models.