Mattel, the iconic toymaker behind Barbie and Hot Wheels, has received an acquisition offer from private equity company L Catterton, Reuters reported, citing sources familiar with the matter.
L Catterton is backed by luxury goods giant LVMH, raising questions about the future direction of Mattel’s brand portfolio.
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This development could ignite a bidding war, with industry rival Hasbro reportedly considering an offer.
Hasbro and Mattel have explored mergers in the past without success.
Mattel has downplayed the news, stating its confidence in its current strategy and ability to deliver long-term shareholder value as a standalone entity.
However, the company’s stock price reportedly surged following the news, reflecting possible investor interest in a potential acquisition.
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By GlobalDataThe news comes amidst ongoing challenges for Mattel.
While the company enjoyed critical and commercial success with the Barbie movie last year, its overall share price has declined by 23% in the past year.
The news agency added that investors are concerned about Mattel’s profitability and its ability to revitalise underperforming toy lines.
In a bid to boost revenue, Mattel has been actively pursuing media partnerships.
This strategy aims to offset sluggish toy sales and leverage the company’s vast library of intellectual property.
The reported acquisition offer underscores the potential for consolidation within the toy industry.
While L Catterton’s offer has sparked industry interest, it remains unclear whether Mattel will seriously consider a sale.
The company appears committed to its current course for now.
Additionally, whether Hasbro will formally enter the bidding process remains to be seen.
A potential acquisition or consolidation could significantly impact the toy market landscape, with implications for product offerings, pricing strategies, and brand partnerships.
Yesterday (22 July), L Catterton reportedly agreed to acquire Hammerson‘s stake in Value Retail for £1.5bn ($1.94bn).
