Mr Men and Little Miss sold to Hello Kitty owner

The much-loved Mr Men and Little Miss brands are to join the massively popular Hello Kitty, after Chorion sold the rights to Japanese firm Sanrio.

Sanrio announced earlier in the year that it was searching for a new brand to reduce its dependency on Hello Kitty, the bow-wearing cat that accounts for 80% of its overseas revenues.

The Mr Men and Little Miss acquisition, for an undisclosed sum, is part of the firm's move to launch a new UK-based business, Sanrio Global, which will expand overseas licensing.

"We are happy to add one of the most well-known UK classic characters, Mr Men and Little Miss, to our Sanrio family," said Ray Hatoyama, Sanrio Global chief executive.

"Hello Kitty was born in London as well and we are sure that they will become good friends. We are confident that with Mr Men and Little Miss on our portfolio, we can drive our global licence programme to the next stage."

Sanrio indicated in July that it was setting aside around ¥30bn (£241m) to buy the rights to major characters and ease its reliance on Hello Kitty.

Chorion, which is currently being broken up, said that the sale of the brands, which includes subsidiary Mr Men Films Ltd, followed a "competitive and comprehensive sales process".

"Mr Men and Little Miss is a wonderful literary estate with over 80 characters and an international licensing, television and publishing business," said Chorion managing director Mary Durkan.

"We are very pleased to be able to hand over this brand to such a highly respected IP owner with an undisputed track record in growing a truly global licensing brand."

Chorion sold the rights to The World of Beatrix Potter and The Octonauts in September to a new company called Silvergate Media, backed by former Chorion chairman Lord Waheed Alli.

The Chorion sale process also includes the Agatha Christie and Raymond Chandler literary estates, as well as Paddington Bear and Noddy.

Various companies have looked to capitalise on instability in the rights sector due to declining DVD sales by picking acclaimed brands for reduced prices.

In October, toy maker Mattel acquired Hit Entertainment, the children's media group behind Bob the Builder and Thomas the Tank Engine, in a $680m deal.

Entertainment One, the owner of the successful Peppa Pig character and distributor of the Twilight movies, indicated plans last month to acquire one of the struggling industry players.