Palitoy (from 1968 to 1980, a British subsidiary of General Mills) was the UK licensee for Hasbro Industries. Palitoy grew out of a plastics firm established by Alfred Edward Pallett in 1909 and went on to become one of Britain’s leading toy manufacturers until its ultimate closure in 1984.
In the early years Action Man competed with the entirely British Tommy Gunn by Pedigree Toys who were the producers of the Sindy doll. The Tommy Gunn figure copied aspects of Hasbro’s G.I. Joe, released two years earlier in the United States. Regardless, Tommy Gunn was generally regarded as a higher quality in terms of equipment and accuracy of accessories, especially since the Action Man of the 1960s was little more than a re-packaged G.I. Joe. However, he was ultimately unable to compete with Action Man and was discontinued in 1968. In the late 1960s and early 1970s many other companies produced competition for Action Man, but all were of the cheap blow-moulded variety, which produces thin-walled components lacking the articulation and sturdiness of the Palitoy components, which utilised more costly Injection and Rotational moulding processes.
Action Man was then developed with primarily British themes from 1970 onwards: military, adventurers, and sportsman, as Palitoy wanted to distinguish their product line from the U.S. counterpart. (Bill) William A.G. Pugh was the head of Action Man’s product development at Palitoy, and can be credited with the development of innovations to the product line which included the flocked hair, gripping hands, and later “Eagle Eyes” which all crossed over to the G.I. Joe line, and by extension to that of other Hasbro licensees.
One series that truly set Palitoy’s line apart from Hasbro’s was the “Ceremonials”. Although Hasbro had a set of Cadet ceremonial outfits, they did not match the scope and range of the British versions, which also included a horse of the Life Guards with full ceremonial regalia as an optional set. The non-military was also covered with adventurous elements such as mountain rescue, Arctic exploration, scuba and deep sea diving. One outfit was only available through the Action Man stars scheme; the Royal Canadian Mounted Police (and accompanying mastiff dog). In the G.I. Joe lineup, this outfit was sold with figure in a variety of configurations through Hasbro Canada.
Info gleaned from Wikipedia