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LOS ANGELES — Jakks Pacific Inc., which makes World Wrestling Federation action figures, is buying Toymax International, Inc., which makes kites, water toys and other products. 

Based on the number of Toymax shares outstanding on Sept. 30, 2001, the deal is valued at $54.7 million in cash and stock. 

The two-step transaction will give Jakks control of the company by the end of February, when Jakks acquires approximately 64 percent of Toymax’s outstanding shares from the company’s principal stockholders. 

Jakks will pay $3 per share in cash and the remainder in shares valued at $1.50 each. 

Toymax will become a wholly owned subsidiary in the second quarter of 2002, when the remaining shares are acquired. 

Jakks said it will trim some of Toymax’s products, but said no immediate layoffs are planned. 

Jakks has been growing steadily since it was founded in Malibu in 1995. Earlier this year, it bought Kidz Biz Ltd., a toy distributor based in the United Kingdom, for an undisclosed price, as the first step in a planned European expansion. 

The company’s highest-profile products are the dolls based on WWF personalities such as “The Rock.” But it also makes Remco die-cast vehicles and Child Guidance educational toys. 

Jakks’s Flying Colors division, which makes crafts and activity sets, just signed a deal with Miramax to make memo pads, portfolio folders, theme books and other products for “Spy Kids 2: Island of Lost Dreams,” the sequel to last year’s successful “Spy Kids” movie. 

“We are still aggressively seeking new acquisitions,” Stephen Berman, Jakks Pacific president, said Sunday. “We hope that within the next three years, we will be a $1 billion company in terms of revenue.” 

Toymax makes “Go Fly a Kite” brand kites, Funnoodle pool and water toys and accessories, and markets toys such as “Creepy Crawlers” under the Toymax brand. Shares of Jakks were up $1.27 to $18.80 and shares of Toymax were up 43 cents to $3.05 at the end of regular trading Friday on the Nasdaq Stock Market.