The Care Bears and Strawberry Shortcake have a new set of playmates, as private equity-backed Cookie Jar Entertainment bulked up its portfolio Wednesday by purchasing the cartoon characters for $195-million.

The arrival of Cheer Bear, Oopsy Bear and the rest of the gang mark the latest in a series of acquisitions by Cookie Jar. It all begs the question of just when its backers might start to, well, raid the cookie jar by cashing in. The ever-so-sweet Care Bears are being sold by card company American Greetings, which created the characters in the early 1980s and retains a 10-year licensing agreement on the properties.

Toronto-based Cookie Jar is owned by Birch Hill Equity Partners, OMERS and its executives. Its stable of characters already includes Caillou, Arthur, the Doolebops and Johnny Test, a favourite at our house.

Four-year-old Cookie Jar was born out of the wreckage of Cinar, acquired back in 2004 for $144-million. It is run by Nelvana co-founder Michael Hirsch, who is no stranger to public markets. Nelvana staged an IPO, then was sold back in 2000 to Corus for $540-million, a premium price that reflects well on Mr. Hirsch's sense of timing.

Private equity funds such as Birch Hill must eventually cash in their chips on holdings, so after steady growth over four years, it's natural to expect some sort of exit is coming for backers of Cookie Jar. Talk of a initial public offering from the company bubbled up in 2006, when Mr. Hirsch said the company's growth plans would likely mean an IPO within the year. Last year, the company was said to have low-key merger talks with a larger entertainment company.

As the company expands, that IPO becomes an increasingly attractive option, and it's clear Mr. Hirsh is trying to flag the growth that's playing out at this still-private concern.

Cookie Jar also announced Wednesday that it closed the previously announced $87-million (U.S.) acquisition of brand management company DIC Entertainment. The California-based company markets a number of cartoon characters, has a massive library of programs and holds a one-third interest in KidsCo, an international children's television channel that currently has five million subscribers.

"When Cookie Jar was founded we wanted to become an international power in children's entertainment programming," said Mr. Hirsh this week. "The acquisition of DIC and now Strawberry Shortcake and Care Bears makes us the fastest-growing independent player in the industry."

Obviously, equity markets aren't exactly embracing IPOs this summer. But the Care Bears acquisition doesn't close until the end of September. By then, investors may be more receptive to the idea of cuddling up with a new media name in their portfolios.