L Catterton, the private equity firm backed by luxury goods giant LVMH, has approached Mattel (MAT), the toy maker behind Barbie and Hot Wheels, with an acquisition offer, people familiar with the matter said on Monday. The move could prompt other potential suitors to consider bids for Mattel, including rival Hasbro, which has become aware of L Catterton's approach and is discussing whether it should also submit an offer. Mattel shares jumped 20% to $19.49 following the Reuters report of the approach, giving the toy maker a market value of $6.5 billion. Hasbro (HAS) shares rose 4% to $61.25.
Mattel has been turning to media partnerships to offset tepid demand for its toys. Despite the commercial success and acclaim of the Barbie movie released last year, its shares had lost 23% of their value in the last 12 months, as investors fretted about Mattel's profitability and handling of unprofitable toy franchises. The El Segundo, California-based company posted a smaller-than-expected loss for the first quarter in April, helped by its tight leash on costs while it grapples with weak sales.
Market Overview:
- L Catterton approached Mattel with an acquisition offer.
- Potential suitors, including Hasbro, may consider bids.
- Mattel shares jumped 20%, while Hasbro shares rose 4%.
Key Points:
- Mattel turning to media partnerships amid weak toy demand.
- Despite success of Barbie movie, Mattel shares down 23% in 12 months.
- Hasbro reported smaller-than-expected drop in Q1 sales.
Looking Ahead:
- Potential acquisition offers for Mattel from various suitors.
- Mattel's strategies to improve profitability and manage unprofitable franchises.
- Hasbro’s continued efforts to reduce expenses and boost gaming revenue.
Mattel has been turning to media partnerships to offset tepid demand for its toys. Despite the commercial success and acclaim of the Barbie movie released last year, its shares had lost 23% of their value in the last 12 months, as investors fretted about Mattel's profitability and handling of unprofitable toy franchises. The El Segundo, California-based company posted a smaller-than-expected loss for the first quarter in April, helped by its tight leash on costs while it grapples with weak sales.
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