(Bloomberg) -- Mattel Inc. is confident in its path as a standalone business after Reuters, citing people with knowledge of the matter, reported that the toymaker has been approached with a buyout offer by the private equity firm L Catterton.
“We do not comment on speculation,” a Mattel spokesperson said in an emailed statement Monday. “We are very confident in Mattel’s strategy and our ability to create long-term shareholder value as a standalone company.”
Mattel shares were up 17% to $19.01 at 1:54 p.m. in New York.
Toy industry stocks are trading below the peaks they reached during the Covid-19 pandemic, when families were trapped at home and parents loaded on products to occupy their kids.
The maker of Barbie dolls and Uno card games reports second-quarter financial results after markets close on Tuesday. In the first quarter, the company posted a smaller-than-expected loss, benefiting from faster sales of its Hot Wheels miniature cars and lower costs. For the second quarter, analysts project Mattel’s sales will rise about 1%.
Reuters said the approach from L Catterton, a money manager backed by LVMH Moet Hennessy Louis Vuitton SE, could attract other suitors, including rival toymaker Hasbro Inc.
A spokesperson for Hasbro declined to comment. L Catterton didn’t respond to requests for comment.
--With assistance from Crystal Tse.
(Updates with comments from company in first paragraph)
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