Business

Mattel Has Held Talks With Buyout Firms


A Mattel manufacturing unit in Mexico. The firm had a market capitalization of about $8 billion as of the shut of the market Tuesday.



Photo:

DANIEL BECERRIL/REUTERS

Mattel Inc.


MAT 10.45%

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

Apollo Global Management Inc.


APO -0.66%

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.


DIS -1.52%

’s princess lineup and its blockbuster “Frozen” franchise, wresting the properties again from rival

Hasbro Inc.


HAS 1.90%

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.

Americans could be getting lower-quality toys for a similar value this Christmas, regardless of a restricted U.S.-China commerce deal. WSJ toured the Chinese metropolis that churns out Frozen and Peppa Pig devices to know the impression of tariff threats. Photo: AP Photo/Ma Ka.

Write to Miriam Gottfried at Miriam.Gottfried@wsj.com and Ben Foldy at Ben.Foldy@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared within the April 27, 2022, print version as ‘Mattel, Buyout Firms Talk Deal.’



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