Mattel Considering Sale After Corporate Turnaround

In the wake of completing its corporate turnaround earlier this year, toymaker Mattel has been discussing a potential sale with private equity firms, including Apollo Global Management and L Catterton, people familiar with the situation told The Wall Street Journal Wednesday (April 27).

The news comes just ahead of Mattel’s first-quarter earnings call with investors and analysts, set for 5 p.m. Wednesday.

WSJ called Mattel’s talks with Apollo and L Catterton “informal,” noting they are “at an early stage and may not result in a deal.” Mattel has a market capitalization of about $8 billion, the report says. In February, Chief Executive Ynon Kreiz said the company had completed its turnaround and was “now in growth mode.” Mattel reported a sales jump of 19% in 2021 and said profits rose, according to WSJ.

Kreiz has overseen a stabilization in sales at Mattel but has cut one-third of its jobs and closed several of its factories. He’s also helped to improve the relationships with retailers and Hollywood studios. The company said it had won the license to produce toys based on Walt Disney Co.’s princess lineup and its “Frozen” franchise, which had previously been produced by Hasbro.

In 2017, Hasbro made an unsuccessful takeover offer for Mattel.

Related: Mattel Launches MEGA BLOKS CarbonNeutral Green Town Line, 99% Recycled Matchbox Tesla Roadster

Earlier this month, Mattel took another step forward in its sustainability efforts with the launch of a MEGA BLOKS Green Town line of products and the release of a Matchbox Tesla Roadster that’s made from 99% recycled materials.

Mattel has set a goal of 100% recycled, recyclable or bio-based plastic materials in all its products and packaging by 2030, the company announcement says. The line of four MEGA BLOKS Green Town sets is the first toy line available at mass retail to be certified CarbonNeutral.

Mattel debuted toy takeback effort Mattel PlayBack in May 2021 in an effort to harness materials from old Mattel toys for Mattel offerings in the future, while helping with the firm’s aim to have completely “recycled, recyclable or bio-based plastic materials” throughout all items and packaging by the end of the decade, according to the announcement.