Private equity firm L Catterton has approached U.S. toymaker Mattel (NASDAQ:) with a buyout offer, according to a Reuters report on Monday, citing people familiar with the matter who said on Monday.
However, the publication cautioned that there is no certainty the private equity firm, which is backed by luxury goods giant LVMH, can push Mattel to explore a sale.
However, it could prompt other potential suitors to assess bids for Mattel, including rival Hasbro, which is said to have become aware of L Catterton’s approach and is considering whether it should also make a bid.
Reuters adds that Hasbro and Mattel have had failed merger talks over the years.
Mattel shares rose more than 9% on Monday following the news. The shares are currently trading at around $18.75 each. The stock is down 0.64% in 2024 and is down more than 13% in the past twelve months.
Earlier this year, analysts at UBS reiterated a buy rating on Mattel, noting that while the capital-light approach to content investing remains central to the strategy, they “hear a nuanced change in that approach, perhaps taking calculated risks with well-known franchises where Mattel believes the returns could be outsized.”
“From small-budget films (or calculated entries into big-budget films) or shows to experiential/digital investments – Mattel is looking for ways to get a bigger slice of the pie with proven brands,” UBS said in March . “Management believes that the overall content/IP potential of the portfolio is still untapped, and that the company is still in the early stages of its transformation to become more IP-driven.”
