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The company was approached in 1963 to license a toy based on a Marine Corp based TV Series, " The Lieutenant", which they turned down as they did not want to be tied to a possible short lived TV show. Hassenfeld Brothers expanded to Canada with Hassenfeld Brothers (Canada) Ltd. In 1960, Henry died and Merrill took over the parent company and his older brother, Harold, ran the pencil-making business, Empire Pencil. The company became a Disney major licensee in 1954. Potato Head, which the company purchased from inventor George Lerner in 1952.
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Hassenfeld Brothers' first toy hit was Mr. The company entered the plastic fields during World War II to support its toy line.
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With Hilal's death in 1943, Henry Hassenfeld became CEO while his son, Merrill, became president. In the 1940s, Hassenfeld Brothers produced doctor and nurse kits, its first toys, and modeling clay becoming a primarily toy company by 1942. With cost of pencils rising and their pencil supplier making pencil cases, Hassenfelds began making their own pencils becoming a source of funding for future lines. In 1926, Hassenfeld Brothers was incorporated with Hilal leaving for another textile business while Henry took charge of the corporation. Over the next two decades, the company expanded to produce pencil cases and school supplies. In 1923, three brothers, Henry, Hilal, and Herman Hassenfeld, founded Hassenfeld Brothers, a company selling textile remnants, in Providence, Rhode Island.