Following a news report that a private equity firm had approached Mattel with a buyout offer, the El Segundo-based toy company said it is “confident” in its ability to deliver profits as an independent, publicly traded company. Reuters reported Monday that L Catterton, a firm backed by luxury goods giant LVMH, had made Mattel an acquisition offer. Catterton has $34 billion in assets under management and has made more than 250 investments in consumer brands.
A spokesperson for Mattel said the company would “not comment on speculation.” Reuters attributed the news of the offer to unnamed sources. “We are very confident in Mattel’s strategy and our ability to create long-term shareholder value as a standalone company,” the spokesperson said.
A source familiar with the company’s operations, who requested anonymity to discuss the internal corporate matter, said there was no merit to the report of an acquisition offer. Mattel’s shares were up 15% to $18.68 on Monday.
In the first quarter of 2024, Bloomberg reported, Mattel posted a smaller-than-expected loss, in part thanks to sales of its Hot Wheels toy cars. For the second quarter, analysts predict sales will rise about 1%, according to Bloomberg. Mattel got a popularity boost last year when a live-action film about the company’s iconic Barbie character set box-office records as it grossed more than $1.
4 billion and became a cultural phenomenon. Chief Executive Ynon Kreiz has led the push into Hollywood, turni.