NATIONWIDE toy and stationery distributor JA Magson Limited, which is based in York, has bought the toy-buying group Youngsters, together with its retail chain Toyzone.

The deal, for an undisclosed sum, incorporates both elements into the JA Magson business, whose turnover is expected to expand by £2 million to £33 million before the year is out.

The Youngsters and Toyzone business went into administration on Tuesday April 1, following poor Christmas trading and some stock issues dating back to summer 2007.

Backed by investor, Agilo, the acquisition by Magson from administrators KPMG went through three days later.

About 40 people at Youngsters head office in Wallington, Oxfordshire, have been given redundancy notices and it is thought that only a few may transfer to Magson's HQ in Kettlestring Lane, Clifton Moor, where there is a 140,000 sq ft warehouse plus offices. All 20 Toyzone stores, including one in Harrogate, will remain open for business, and all 200 jobs there will be preserved. Magson employs 200 people in Clifton Moor, the hub of a UK distribution network which services retailers with toys, stationery, cards, gift-wrap and other products.

It began as a family business in St Saviourgate, York, in 1929, before moving to Leeman Road, then transferring 18 years ago to Clifton Moor, first in Audax Road and then in 2004 at the former industrial printer's premises of Lawson Mardon Group, in Kettlestring Lane.

The move followed a series of acquisitions in Blackburn, Middlesbough, Huddersfield and Northampton, with other businesses in Ipswich, Hull and Uckfield consolidating in Clifton Moor.

Last November, Magson ceased being a family business when it was acquired by Agilo Ltd to give the company financial backing for its growth plans, and Alan Gaynor took over the reins as chief executive.

Neil Mason, Magson's finance director, said: "Since Agilo financed the takeover of JA Magsons last November, this is our second acquisition in the toys and stationery market and we are looking at other prospects too.

"It's good news for York, securing Kettlestring Lane and our distributiuon network hub, and consolidating the role of the team and the site in York."

Jason Granite, founding partner of Agilo, said the latest acquisition from KPMG "signals our belief in the brand, the market and the opportunities to grow and consolidate".