has held talks with private-equity corporations a few potential sale, individuals accustomed to 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
and L Catterton, the individuals stated. The talks are at an early stage and will not lead to a deal.
If there’s one, it will be sizable. Mattel had a market capitalization of about $8 billion as of the shut of the market Tuesday. It would add to a latest string of large leveraged buyouts, as private-equity corporations look to spend a mountain of money they’ve amassed.
Chief Executive Ynon Kreiz stated in February that Mattel had accomplished its turnaround and was “now in growth mode.” Mattel reported a gross sales soar of 19% in 2021 and stated income rose. Yet its shares have barely budged over the previous yr and have finished little previously twenty 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 buyers 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 minimize 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 supply toys primarily based on
Walt Disney Co.
’s princess lineup and its blockbuster “Frozen” franchise, wresting the properties again from rival
Hasbro has had its personal troubles. The maker of Nerf and Monopoly is within the center of a proxy battle 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 supply for its rival.
—Laura Cooper contributed to this text.
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Appeared within the April 27, 2022, print version as ‘Mattel, Buyout Firms Talk Deal.’