The world’s largest toy specialist Toys R Us has acquired the FAO Schwarz toy stores for an undisclosed sum.

FAO Schwarz, which first opened in 1862, describes itself as the oldest toy retailer in the US. Toys R Us will operate all three FAO Schwarz stores – two in New York and one in Caesars Palace in Las Vegas.

Toys R Us chief executive Jerry Storch said: “We will work tirelessly to preserve the distinctiveness and integrity of FAO Schwarz as we grow the business.”