Jakks Pacific Inc. said Wednesday it agreed to acquire the assets of privately held Creative Designs International Ltd. and a related Hong Kong company for $116.5 million in cash and stock.

The Malibu-based toymaker will pay $93.3 million in cash, 150,000 shares of Jakks common stock, valued at approximately $3.2 million, and an additional payment up to $20 million through 2008, based on certain financial milestones.

The transaction, which is subject to compliance with the Hart-Scott-Rodino review period, is expected to close in the first quarter of 2006.

Feasterville, Pa.-based Creative Designs manufactures girls’ dress-up and role-play toys, including dress-up outfits, tea sets, pretend kitchens and vanities. Creative Designs International holds a number of licenses from companies including Walt Disney Co. for its classic characters, princesses and fairies. In 2004, Creative Designs reported earnings of $28.4 million on revenue of approximately $142.8 million.

Shares of Jakks rose 3.7 percent to settle at $20.98 on Wednesday.