RACING CHAMPIONS ACQUIRES ERTL COMPANY TO BOOST MARKET SHARE

          IL-based Racing Champions has signed a letter of intent
     to acquire IA-based Ertl Co. from U.S. Industries, according
     to George Lazarus of the CHICAGO TRIBUNE.  The deal "doubles
     the size of Racing Champions," which manufactures die-cast
     miniature racing car collectibles and had '98 sales of more
     than $150M.  Racing Champions has licensing deals for
     collectibles associated with Hot Rod, Motor Trend and NASCAR
     brands.  Ertl "is the market leader in both agricultural and
     custom imprint die-cast collectibles."  Racing Champions
     "currently sells through 20,000 retail outlets in North
     America" and Lazarus writes that "not only does Ertl
     strengthen the parent's collectibles business," it also
     "adds new distribution channels" (CHICAGO TRIBUNE, 2/2).