Round 2 announces intent to acquire Lionel

Tim_Kidwell1 · February 23, 2026, 10:23pm

Hi everyone! I know there has been a lot of chatter online about this, but I wanted to drop the official release from Round 2 here. We’ll be following up on this story as it evolves.

From Round 2:

As you may have heard, Praesidian’s portfolio company, Round 2 has announced its intent to purchase Lionel, LLC. In the weeks ahead, as the transaction progresses, the companies will come together as the Lionel Brands Group. We are aligned around a shared vision to build a stronger, fan-first platform that supports the brands, communities, and partners that have made each company successful, while creating new opportunities to grow over time.

In the near term, it remains business as usual. Our priority is maintaining continuity and supporting the programs already underway. Future announcements will be made on our social media channels.

We appreciate your continued support, and we look forward to building on the strong legacies that define both Lionel and Round 2.

Crazy-Creator-5601 · February 23, 2026, 10:55pm

Interesting. I have never heard of Lionel, LLC and wonder about what kind of models they were producing before this merger. I have been a long time client of AMT models when they first produced Star Trek models, which in turn became part of Round 2 and Polar Lights and always admired their new releases, although Polar Lights has too steep prices for my own pocket.
Besides, their scales do not fit me at all. Either they produce far too big models or far too small ones for my liking. I got used to some 1/567 scale USS Enterprises and even 1/1000 Excelsior and Enterprise B, but only because had the scale been larger I wouldn’t have had the pleasure to display them in my apartment. I will probably always remain faithful to AMT through Round 2 but will always have a problem with Polar Lights, no matter how much more detailed or complex their builds are. I am just an old fox and have my habits. The rest I leave to younger generations.

Tim_Kidwell1 · February 24, 2026, 3:28am

Lionel is a ~126-year-old company that produces O and HO scale trains and accessories and, more recently, die-cast NASCAR race cars. So this would be an acquisition outside of the plastic-model space for Round 2, though both companies share the die-cast aspect.

Crazy-Creator-5601 · February 24, 2026, 5:03am

Thank you Tim for your information. Many years ago I had a colleague who had a large N scale arrangement of trains placed in a huge diorama in his cellar. Although very well done and extremely fascinating how everything worked, once I had a look underneath the supporting platform, I witnessed a jungle of cables hanging a bit everywhere, all carefully labeled with many different colored labels, and each hinted to a different function or configuration.
So much dedication, so much passion went into it all that was almost moved to do the same, but alas life changed when I left for New York to study Drama.
And yet, I did help him in building his tiny houses and further building more tracks and more scenery that I slowly learned the importance of how to build a diorama.
I didn’t have the time back then, but now that I am retired I just couldn’t help it and had to jump right back in and what a joy it is to create things with my own two hands…

the_Baron · February 24, 2026, 1:30pm

Yeah, Lionel is a classic model train company, going back to the 30s at least. This is interesting, and if it means that the brand is saved from going away, it’s definitely a good decision.

Best regards,
Brad

Tim_Kidwell1 · March 4, 2026, 4:58pm

It’s official! Round 2 has purchased Lionel. Here’s the press release:

NEW YORK, NY, MARCH 4, 2026 – Round 2, a leading collectibles company and portfolio company of Praesidian Capital, today announced it has acquired Lionel, LLC (“Lionel”), a historic brand that has been beloved by generations of fans and collectors for more than 125 years. The transaction creates the Lionel Brands Group, a bigger, fan-first home for the brands and categories collectors care about most.

The deal unites two category leaders under one roof, giving the newly formed company the ability to strengthen its investment in product development and storytelling while enhancing what already works best for each brand and honoring the heritage and authenticity that have defined Lionel for more than a century. To accomplish that goal, the leadership and product teams behind both brands will remain in place.

The acquisition builds a stronger platform for adjacent product categories and shared fandom, while continuing to rely on the leadership and product development teams that know these brands best. Round 2 and Lionel bring complementary products and capabilities, additional opportunities in licensing, and increased ability to show up as an even more important partner to key retailers.

The acquisition closed on March 2. Transaction details were not disclosed.

Richard Barry, CEO of Lionel Brands Group, said: “Lionel is one of the most beloved and historic names in American collecting, with a history of craftsmanship that deserves thoughtful stewardship. We’re proud to be the custodians of this iconic, fan-first brand as we combine it with Round 2’s fan-first portfolio to invest in new products, better storytelling, and more ways to show up for fans and collectors.”

Howard Hitchcock, President and Chief Operating Officer of Lionel Brands Group, added: “Lionel has always been about that train-under-the-tree magic, and that same spirit shows up everywhere the brand lives, from the rails to the racetrack. This next stop on the brand’s journey will keep the heart of the brand intact and will put more support behind the people building it. We’re going to protect what fans and collectors love and give them even more reasons to climb aboard for what’s next.”

Jason Drattell, Praesidian Capital Founder and Managing Partner, said: “True heritage like Lionel’s is both rare and powerful. Combining the strength of Lionel’s legacy with Round 2’s fan-favorite products allows us to build a stronger platform for the communities that have kept these brands for generations while increasing our ability to invest in long-term growth.”

Tom Duffy, Praesidian Capital Partner, added: “Lionel and Round 2 share a vision of delivering products built around authenticity and detail across brands collectors and fans love. We look forward to supporting the talented management team as they build a platform for the future.”

About Lionel Brands Group

Lionel Brands Group is a home for iconic, fan-first brands focused on modern collectibles, including its legacy model trains, die-cast vehicles, model kits, slot cars, and other hobby products. Serving passionate communities of fans, hobbyists, and collectors across categories where authenticity and craftsmanship matter, the company owns several well-known brands, including Lionel, Lionel Racing, AMT, Polar Lights, Hawk, MPC, Lindberg, Auto World, and Big Country Toys. The company produces products through dozens of licensing agreements with iconic brands, such as NASCAR, Disney, Warner Bros., The Polar Express, Johnny Lightning, Racing Champions, General Motors, Ford, Star Trek, and Star Wars. For more information about Lionel Brands Group or to purchase products directly through the company’s dedicated e-commerce platform visit https://www.lionelbrands.com/.

About Praesidian Capital

Praesidian Capital is a private equity firm focused on providing capital to established lower-middle-market businesses. With decades of experience, the Praesidian team partners with management to support growth, strategic acquisitions, and operational excellence. For more information, visit www.praesidian.com.

Tim_Kidwell1 · March 4, 2026, 5:06pm

As I said in my interview with Classic Toy Trains about this news, I think it’s a good thing.

“Is the acquisition of Lionel a good move for the hobby? Tim Kidwell thinks so. “In my estimation, this is good for Lionel. Round 2, under the guidance of previous owner Tom Lowe, and now with its current CEO Richard Barry, has meticulously revived classic brands and become arguable the largest U.S.-based scale modeling company. It has refreshed old kits with new parts and decals for the nostalgia market, and since 2023, has been leaning into newly tooled products and taking advantage of its many licenses. It’s a creative powerhouse, and I think this acquisition will reinvigorate Lionel while also building Round 2’s model train side,” he said.”

It creates a solid, U.S.-based hobby company with horsepower behind it. With a customer-first attitude, one that is additive rather than extractive, the new Lionel Brand Group (not to be confused with LGB) will be poised for doing good things across its entire brand portfolio. I’m excited to see where this goes, especially for scale modeling, of course. It’s good to have positive news.