DailyDownForce.com claiming that Lionel to be acquired by Round 2, a portfolio company of Praesidian Capital

[Chris Webster]

Just passing this along - I don't know anything about the website it is posted on:

Following days of intense online speculation and rumors within the diecast community, Lionel, LLC has officially confirmed that it is set to be acquired by Round 2, a portfolio company of Praesidian Capital.

The two giants of the hobby and collectibles industry will eventually merge to form a new entity known as the Lionel Brands Group.

The Daily Downforce reached out to Lionel, and they confirmed Round 2’s intent to purchase the company, noting that the transaction is expected to progress over the coming weeks. The move signals a major shift in the landscape of NASCAR merchandising and diecast production, bringing together two of the most recognizable names in the business.

Full article - Confirmed: Lionel and Round 2 to Merge into New “Lionel Brands Group” February 20, 2026

This news doesn't appear to have been posted to NK yet.

[healey36]

There have been reports for nearly a week now, including info passed along from the New York Toy Show. Looks to be a done deal. What does it mean...well, maybe the era of $1800-$2500 3-rail locomotives is over and a return to an MPC-era business model emerges (ironically, the MPC brand is one of the holdings of Round 2).

The king is dead, long live the king.

[webenda]

Praesidian’s Ownership Stake in Round 2

Praesidian Capital acquired a controlling interest of 51% in Round 2 in 2021.

https://www.bing.com/search?pglt=299&q= ... A1&PC=HCTS

This could be good news, but how often do holding companies “Suck the Acquisition Dry” and abandon it?

https://www.bing.com/search?pglt=299&q= ... A1&PC=HCTS

[Rufus T. Firefly]

The king is dead, long live the king.

Meh.

[healey36]

If Lionel’s NASCAR diecast business was truly the target, then maybe the toy train business is headed for a spin-off. It wouldn’t seem a stretch to think a sale of the brand to the Chinese manufacturers could be in the cards.

[healey36]

For what it's worth:

https://www.lionelbrands.com/lionel-brands-group-launch-press-release/

[HONDO74]

Richard Barry, CEO of Lionel Brands Group

Howard Hitchcock, President and Chief Operating Officer of Lionel Brands Group

Praesidian Capital hired. Richard Barry, Former Toys “R” Us Executive

On September 18, 2017, Toys "R" Us, Inc. filed for Chapter 11 bankruptcy

So what happened to Thomas E. Lowe who owned Round 2

[healey36]

He was still part of the organization after the reorg in 2023. Maybe he took the money and ran after this transaction.

[Rufus T. Firefly]

So what happened to Thomas E. Lowe who owned Round 2

Thomas Lowe is the President at Pumpkin Patch based in Portland, Oregon.

Previously, Thomas was the President at Round 2 and also held positions at Playing Mantis.

[healey36]

Sounds like he went home to the family farm...can't say I blame him.

[Rufus T. Firefly]

Sounds like he went home to the family farm...can't say I blame him.

Apparently in 2024, too.

[healey36]

Deal financing arrangements:

https://www.businesswire.com/news/home/20260319623632/en/Chicago-Atlantic-Agents-a-Senior-Secured-Facility-to-Support-the-Acquisition-of-Lionel-Holdings-LLC-by-Round-2-Holdings-LLC

[HONDO74]

Deal financing arrangements:

https://www.businesswire.com/news/home/20260319623632/en/Chicago-Atlantic-Agents-a-Senior-Secured-Facility-to-Support-the-Acquisition-of-Lionel-Holdings-LLC-by-Round-2-Holdings-LLC

This is interesting.....
The combined company intends to capitalize on continued consumer demand for nostalgic, collectible, and enthusiast-driven products, supported by strong brand equity and loyal customer bases, and (a growing direct-to-consumer presence.)

[G3750]

Deal financing arrangements:

https://www.businesswire.com/news/home/20260319623632/en/Chicago-Atlantic-Agents-a-Senior-Secured-Facility-to-Support-the-Acquisition-of-Lionel-Holdings-LLC-by-Round-2-Holdings-LLC

This is interesting.....
The combined company intends to capitalize on continued consumer demand for nostalgic, collectible, and enthusiast-driven products, supported by strong brand equity and loyal customer bases, and (a growing direct-to-consumer presence.)

Yes, could we see the end of the byzantine Lionel dealer / distributor network?

George