Private equity firms discuss potential buyout of toy maker Mattel

U.S. private equity firms Apollo Global and L Catterton have held talks with Mattel, maker of Barbie dolls and Fisher-Price toys, over a potential $ 7.8 billion acquisition of the NASDAQ-listed company.

The matter of taking over Mattel is preliminary, many sources said are familiar with the issue, and have not been asked, suggesting that any potential deal is at an early stage and may still fall apart.

It also comes when Matel shares, based in El Segundo, California, have been sold in wider markets in recent months despite the company’s return to profitability and growth under CEO Inon Kreis, which frustrates the company.

Mattel has not made a decision to hire bankers to advise on a possible deal, sources said, noting the price at which private equity buyers will be willing to buy the company.

Mattel, Apollo Global and L Catterton declined to comment. Talks about a possible takeover were first reported by the Wall Street Journal.

Founded in 1945, Mattel manufactures toys such as Barbie, Hot Wales and its Fisher-Price brand that have become a major component of American life. However, it has struggled financially for much of the last decade before that Going through a makeover under KreisAppointed CEO in 2018.

Kreis redeployed the company by dismantling a third of Mattel’s workforce and renovating its production supply chain in order to revive profits. His efforts to win back licenses for its intellectual property and promote an ambitious plan to turn the company’s famous toys and games into valuable digital media and entertainment assets, have helped bolster growth.

Last year, the company’s sales rose 19% to $ 5.5 billion and its free cash flow doubled to $ 334 million.

In the coming years, Mattel’s toys and games will increasingly be linked to movies, most notably the planned release in 2012 of a Barbie movie starring actress Margot Ruby. The company plans to produce over a dozen more movies and will continue to expand to television, digital games and even live music events.

Mattel is set to post its first-quarter earnings on Wednesday.

Private equity firms discuss potential buyout of toy maker Mattel Source link Private equity firms discuss potential buyout of toy maker Mattel

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