[ad_1]
The logo of American toy company Mattel appears at the 72nd Toy Fair (Spielwarenmesse) in Nuremberg, southern Germany, on February 2, 2023.
Christof Stache | AFP | Getty Images
L Catterton, a private equity firm backed by luxury giant LVMH, has signed a MattelThe U.S. toymaker of Barbie and Hot Wheels toys is making a takeover offer for the company, people familiar with the matter said on Monday.
The move could prompt other potential buyers to consider a takeover of Mattel, including its rivals HasbroThe company is aware of L Catterton’s interest and is discussing whether it should also submit an offer, the sources said. Hasbro and Mattel have been in unsuccessful merger talks for years.
The sources cautioned that L Catterton’s approach would not necessarily prompt Mattel to explore a sale and requested anonymity because the matter is confidential.
A Mattel spokesman said the company does not comment on speculation. “We are very confident in Mattel’s strategy and our ability to create long-term shareholder value as an independent company,” the spokesman said.
Hasbro declined to comment, while L Catterton has not yet responded to a request for comment.
Mattel shares rose 20 percent to $19.49, giving the company a market value of $6.5 billion, after Reuters reported the acquisition plans. Hasbro shares rose 4 percent to $61.25.
Mattel has been seeking media partnerships to offset sluggish demand for its toys. Despite the commercial success and critical acclaim of last year’s Barbie movie, the company’s shares have fallen 23 percent in the past 12 months as investors have worried about Mattel’s profitability and handling of unprofitable toy franchises.
The El Segundo, California-based company in April reported a smaller-than-expected first-quarter loss as it managed to keep a tight rein on costs while grappling with weak sales.
In February, activist investor Barington Capital called on Mattel to make changes, including exploring options for the Fisher-Price and American Girl brands and separating the positions of CEO and chairman.
L Catterton has $34 billion in assets under management and has made more than 250 investments in consumer brands since its founding in 1989, according to its website. In 2016, the firm partnered with LVMH and the family office of CEO Bernard Arnault, selling a stake to them.
Hasbro also took steps to cut costs.
The Play-Doh maker reported a smaller-than-expected drop in first-quarter sales in April and easily beat profit estimates thanks to lower inventory and solid digital gaming revenue.
Last year, Hasbro agreed to sell its eOne film and TV studio to Lionsgate Entertainment for about $500 million as part of its efforts to focus on more profitable brands. Hasbro’s shares have outperformed Mattel’s, falling 9% over the past 12 months.
Mattel and Hasbro agreed last year to create co-branded toys and games using some of their most popular brands, including Monopoly games under the Barbie brand and UNO games under the Transformers brand. Analysts say a merger of the two companies could unlock huge value but also faces significant antitrust hurdles.
[ad_2]
Source link
