Classic Toy Trains recently posted an article announcing Round 2’s intent to acquire Lionel, LLC. If you’re not a die-cast or plastic model kit fan, you might not be familiar with Round 2 or its product lines.
According to Tim Kidwell, Editor-in-Chief of FineScale Modeler magazine, Round 2 is best known for producing plastic model kits under the AMT, Hawk/Lindberg, MPC, and Polar Lights brands. It holds licenses with companies like Disney, Lucasfilm, Paramount, Coca-Cola, and the big three car manufacturers (Ford, General Motors, and Chrysler).
It also specializes in die-cast replicas via its Auto World, American Muscle, and Johnny Lightning brands, electric slot cars with its Racing Champions line, and N-and HO-scale model train accessories under Classic Metal Works. Located in South Bend, IN, Round 2 was founded by Thomas Lowe in 2005. In 2021, Praesidian Capital bought a 51% share in Round 2, adding it to its portfolio of companies. Round 2 products can be found in major retailers like Walmart, Target, and Michaels.
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.
An active discussion has started on the Classic Toy Trains forum about the acquisition, touting Round 2’s products and innovations. “I think Lionel will be a big step for them. It’s a new world and, though it is related to their core, it has a different audience and market. Injection molding is in Round 2’s DNA, and [the] hobby [market] is their game. They apparently have good relationships with manufacturers, and they seem to know which lines to press forward with and keep available. They do collectable vehicles in several scales and in die-cast, so that material is not foreign to them,” said hobbyist Steven P. Allen.
Other hobbyists are looking forward to new licensed products. “Could we see some classic movie monster figures on Lionel products? Polar Lights makes great figure kits, and they’d be easy to miniaturize,” said hobbyist Rebecca Penelope Chestney.
