9 Story Entertainment is seeing monsters as it gets into the plush toy business.

The kids TV producer has acquired a half-stake in The Monster Factory Company, the Toronto-based creator and maker of a monster-toy brand run by company founders Adam Dunn, Rhya Tamasauskas and Bliss Man.

9 Story CEO Vince Commisso told Playback Daily the strategy is taking a 50% stake in The Monster Factory initially to retain the main principals, whose expertise in merchandising and licensing is required, with an option to acquire the half-stake they do not already own down the road.

“The three founders are the creative visionaries and have a lot of value to add. They are behind the traction the company’s had to date. They should be involved,” he said.

Terms of the agreement for the half-stake were not disclosed.

But the deal marks another move by 9 Story Entertainment into the consumer products licensing business after a recent foray by its Almost Naked Animals cartoon series.

Commisso said The Monster Factory has expertise that 9 Story needs to get deeper into merchandising and licensing, a key revenue driver for animation producers.

The deal also gets 9 Story into a elite club of Canadian cartoon producers including Nelvana and Cookie Jar Entertainment that have stuffed popular TV cartoon characters for sale as licensed plush toys.

The Monster Factory was launched in 2007 and manufacturers a range of plush monsters with character names and story lines.