Toy Maker Mattel’s Stock Soars on Reported L Catterton Buyout Offer

Mattel (MAT) shares soared over 15% Monday, nearly erasing year-to-date losses following a report it received an acquisition offer from LVMH-backed private equity firm L Catterton. L Catterton is backed by French luxury conglomerate Moët Hennessy Louis Vuitton SE (LVMUY), commonly referred to as LVMH.

The Barbie and Hot Wheels toy maker isn’t explicitly pursuing a sale, but L Catterton’s offer could also lead to other offers, Reuters reported, citing sources familiar with the matter. Mattel did not immediately respond to a request for comment.

L Catterton’s Offer Could Lead to Others Amid Activist Investor Pressure

L Catteron’s interest could spur a similar offer from others such as competitor Hasbro (HAS), which has engaged in merger talks with Mattel in previous years, Reuters reported.

The offer from L Catteron comes as Mattel faces pressure from activist investors to restructure and boost performance, with Barington Capital calling on Mattel to consider strategic alternatives for its Fisher-Price and American Girl brands earlier this year.

“The long decline at both Fisher-Price and American suggests that Mattel may not be the right owner of these brands,” Barington CEO James Mitarotonda said in a letter in February. 

“We believe that these brands are now detracting from the success at Mattel’s other segments, and hurting shareholder value,” he added. 

Mattel is set to report its second-quarter results after the bell Tuesday, when it could offer investors more details on its plans after narrowing losses in the first quarter.