New tracks are being made as Praesidian Capital’s portfolio company Round 2 acquires Lionel. The acquisition closed on March 2, and both companies have rebranded under a new name: Lionel Brands Group.
Last month, during Toy Fair New York, attendees, including model train and die-cast hobbyist retailers, got a first look at the company’s rebranding. Across a locomotive and three box cars was the representation of every brand under the Lionel Brands Group. It’s no coincidence that the newly formed company was shown on the showfloor, as the previous Toy Fair marked the beginning of the acquisition.
“It all goes back a year and a bit ago when Howard [Hitchcock] and I were at Toy Fair,” says Richard Barry, CEO of Round 2. “At that time, Praesidian Capital was looking at making acquisitions, and Howard said there could be an opportunity. I had my private equity partners at the show, so we met with Howard, and we’d been working diligently on this acquisition ever since.”
Headshot of Richard Barry, CEO of Round 2. | Source: Round 2
Headshot of Lionel CEO Howard Hitchcock. | Source: Lionel
Consumers best know Round 2 for its model kits, die-cast collectibles, and model train accessories. Based in South Bend, Indiana, the company has notable brands such as Polar Lights, Auto World, American Muscle, Big Country Toys, Racing Champions, and Johnny Lightning. With a company devoted to developing high-quality products for collectors, Praesidian Capital plans to build Round 2’s platform with like-minded companies like Lionel, which have “similar attributes from a fan point of view.”
Lionel Halloween Express at Toy Fair New York 2026 | Source: The Toy Book
New products from Round 2, including Twisted Metal die-cast, and licensed model kits featuring My Little Pony and Home Alone at Toy Fair New York 2026 | Source: The Toy Book
A limited-edition Lionel Train at New York Comic Con (NYCC) 2025 | Source: The Toy Book
Round 2’s Big Country Toys at Toy Fair New York 2026 | Source: The Toy Book
“Lionel has the heritage and magic that people remember and really engage with,” says Howard Hitchcock, CEO of Lionel. “Round 2 has very high-end, quality products that speak to some of the same enthusiast groups that we’re used to talking to. When you unite these principles and categories, it makes a stronger machine.”
Lionel, an American brand widely recognized for its model trains, celebrated its 125th anniversary last year. The company has overcome decades of challenges in the toy industry through its legacy of innovation, imagination, and devoted following not only from train lovers but also from racing fans through its NASCAR licensee, Lionel Racing. Lionel continues to uphold its values and support its community by looking to the future, which includes this acquisition.
With two category leaders under one roof, Lionel Brands Group will strengthen its investments in product development and storytelling while maintaining each brand’s core values. While the leadership and product teams behind both brands will remain in place, the companies have plans to leverage each other’s strengths for future growth.
“The foundation of both companies is the unbelievable product development teams, who are uber experts and passionate enthusiasts in their own rights,” Barry explains. “This is a very important part because our product development teams are the engine room of future development and getting fans excited about the future.”
“We both have the train side and the racing side of the business,” Hitchcock adds. “There are platforms within Round 2, such as their model kits and slot cars, that really leverage themselves for Lionel Racing. On the train side, there’s talk on how to take brands or IP that we have in our space and move that across to Round 2.”
Lionel Brands Group also builds a stronger platform for its shared communities, creating a fan-first home for collectors’ favorite brands and categories. The deal brings complementary products and capabilities, additional licensing opportunities, and a stronger presence as a vital partner to key retailers. As Lionel Brands Group establishes its place in the toy industry, the company will still give hobbyists and fans top priority across all its brands.
“All of our brands, whether it be from Lionel or Round 2, have an identity, a passion base, and a collector base — and we don’t intend to lose any of that,” Hitchcock says. “For Lionel Brands Group, we see a group of brands that come together, sharing similar ideologies and the ability to leverage a platform. Our combined efforts will allow us to strengthen all of the sub-brands that are meaningful to the passion bases, potentially crossing some of those over and building on that.”
“We’re very ambitious in making this acquisition, but we have great ambition to make future acquisitions,” Barry shares. “We’re going to integrate these two businesses, and then we’re going to look for other businesses that can be exciting for us in the future and can really resonate with our joint fanbases.”
This acquisition marks a significant milestone in the toy industry. By uniting two iconic companies and their brands, Lionel Brands Group will invest in new products, improved storytelling, and additional avenues to engage its growing audiences. Moving forward, the Group will continue to connect with its consumer bases by protecting the heart of the brands while giving fans more ways to engage with what they love.
“At the core of these great brands are always great products,” Barry says. “I’m really excited about working with the super-talented team at Lionel. We’re finding more ways to create products with a big portfolio of brands, an amazing tool set, and great relationships with our licensing community.”
“I am ultimately a product guy at heart, and I think driving the future of the business with product, product innovations, partnerships, and collaborations is a way to really energize this overall business,” Hitchcock adds. “I’m excited to bring innovative stuff to our customer base, the consumers, and the passionate groups that we listen to. We look forward to evolving the company as things come our way.”
Trending Products
