Mattel Inc.
MAT 10.85%
has held talks with private-equity corporations a couple of potential sale, individuals aware of the matter stated, just some months after the famed toy firm declared its company turnaround full.
Mattel has held casual talks with corporations together with
Apollo Global Management Inc.
APO 0.65%
and L Catterton, the individuals stated. The talks are at an early stage and will not end in a deal.
If there may be one, it might be sizable. Mattel had a market capitalization of about $8 billion as of the shut of the market Tuesday. It would add to a current string of massive leveraged buyouts, as private-equity corporations look to spend a mountain of money they’ve gathered.
Chief Executive Ynon Kreiz stated in February that Mattel had accomplished its turnaround and was “now in growth mode.” Mattel reported a gross sales leap of 19% in 2021 and stated earnings rose. Yet its shares have barely budged over the previous yr and have finished little previously 20 years.
Shares of Mattel jumped 12% to $24.78 in Wednesday buying and selling following the Journal’s report. The firm is scheduled to replace traders on its quarterly outcomes after U.S. markets shut Wednesday.
On Mr. Kreiz’s watch, gross sales on the maker of Barbie, Hot Wheels and Fisher-Price toys have stabilized after years of declines and the lack of a key license. The CEO lower a 3rd of its jobs and closed a number of factories. A former tv government, he additionally helped to restore Mattel’s relationships with retailers and Hollywood studios.
In January, the corporate stated it had received the license to provide toys primarily based on
Walt Disney Co.
DIS -0.11%
’s princess lineup and its blockbuster “Frozen” franchise, wresting the properties again from rival
Hasbro Inc.
HAS 2.86%
Hasbro has had its personal troubles. The maker of Nerf and Monopoly is in the course of a proxy combat with activist investor Alta Fox Capital Management LLC, which is pushing the corporate to spin off the unit housing Dungeons & Dragons, referred to as Wizards of the Coast and Digital Gaming, and looking for to switch board members.
In 2017, Hasbro made an unsuccessful takeover provide for its rival.
—Laura Cooper contributed to this text.
Write to Miriam Gottfried at [email protected] and Ben Foldy at [email protected]
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Appeared within the April 27, 2022, print version as ‘Mattel, Buyout Firms Talk Deal.’
Source: www.wsj.com”