Lego buys partner's stake in schools unit

Toy-maker Lego today took full control of its education division after buying the remaining 49% stake for 4.4 million (£3.7 million) from the UK-listed education supplier RM.

Lego Education Europe distributes specialist branded toys and educational tools for use in schools.

Denmark-based Lego is paying 2.2 million in cash and a further 2.2 million in debt repayment.

RM, which is selling non-core assets, is also selling parts of its separate Dacta toy business to Tolo Toys Learning for 270,000.

Lego Education Europe was set up in 2010, after previously being part of Dacta.

RM indicated that the businesses that it is selling "are expected to be loss-making for the 14 months to November 30, 2011".

Shares in RM, which have fallen two-thirds in a year, were unchanged.