The logo of American toy company Mattel can be seen at the 72nd Toy Fair (Spielwarenmesse) in Nuremberg, southern Germany, on February 2, 2023.
Christoph Stach | AFP | Getty Images
Private equity firm L Catterton, backed by luxury goods giant LVMH, has been approached MattelThe toymaker behind Barbie and Hot Wheels has made a takeover bid, people familiar with the matter said on Monday.
The move could prompt other potential suitors, including rivals, to consider bids for Mattel HasbroOne source said the company was aware of L Catterton’s approach and was discussing whether it should also submit an offer. Hasbro and Mattel have been in merger talks for years without success.
It’s unclear whether L Catterton’s actions will prompt Mattel to seek a sale, the sources cautioned, asking not to be identified because the matter is confidential.
A Mattel spokesman said the company does not comment on rumors or speculation. Hasbro also declined to comment, while L Catterton did not respond to a request for comment.
After Reuters reported the acquisition, Mattel’s shares rose 20% to $19.49, giving the toy maker a market value of $6.5 billion. Hasbro shares rose 4% to $61.25.
Mattel has been seeking media cooperation to offset tepid demand for its toys. Despite the commercial success and critical acclaim of last year’s Barbie movie, Mattel’s shares have fallen over the past 12 months as investors worry about Mattel’s profitability and handling of unprofitable toy franchises 23%.
The El Segundo, California-based company posted a smaller-than-expected loss in the first quarter of April as it kept a tight rein on costs while battling soft sales.
Activist investor Barington Capital in February called on Mattel to seek changes, including exploring options for the Fisher-Price and American Girl brands and separating the roles of CEO and chairman .
L Catterton’s website shows that since its establishment in 1989, it has assets under management of US$34 billion and has made more than 250 investments in consumer brands. In 2016, the company partnered with LVMH and the family office of LVMH Chief Executive Bernard Arnault and sold shares to them.
Hasbro has also taken steps to reduce spending.
The Play-Doh maker reported a smaller-than-expected decline in first-quarter sales in April, with profits handily beating expectations on the back of lower inventory and steady digital gaming revenue.
Its shares have outperformed Mattel, falling 9% in the past 12 months.
