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

Mattel (MAT) shares soared complete 15% Monday, astir erasing year-to-date losses pursuing a study it received an acquisition connection from LVMH-backed backstage equity patient L Catterton. L Catterton is backed by French luxury conglomerate Moët Hennessy Louis Vuitton SE (LVMUY), commonly referred to arsenic LVMH.

The Barbie and Hot Wheels artifact shaper isn’t explicitly pursuing a sale, but L Catterton's connection could besides lead to different offers, Reuters reported, citing sources acquainted pinch nan matter. Mattel did not instantly respond to a petition for comment.

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

L Catteron’s liking could spur a akin connection from others specified arsenic competitor Hasbro (HAS), which has engaged successful merger talks pinch Mattel successful erstwhile years, Reuters reported.

The connection from L Catteron comes arsenic Mattel faces unit from activist investors to restructure and boost performance, pinch Barington Capital calling connected Mattel to see strategical alternatives for its Fisher-Price and American Girl brands earlier this year.

"The agelong diminution astatine some Fisher-Price and American suggests that Mattel whitethorn not beryllium nan correct proprietor of these brands," Barington CEO James Mitarotonda said successful a missive successful February. 

“We judge that these brands are now detracting from nan occurrence astatine Mattel's different segments, and hurting shareholder value,” he added. 

Mattel is group to study its second-quarter results aft nan doorbell Tuesday, erstwhile it could connection investors much specifications connected its plans aft narrowing losses successful nan first quarter.