According to Wall Street Journal, Mattel (NASDAQ 🙂 has been reportedly in discussions with buyout companies to consider a sale. It comes only a few months following the company’s financial recovery.

Although Mattel is reported to have held talks with Apollo Global Management and L Catterton in private equity, the discussions are in their infancy and might not end in a deal.

However, if Mattel agrees to sell, it would be a large-scale deal based on the toymaker’s $8 billion market cap. This deal is the latest in a string of leveraged buyouts that private equity firms are looking to use the large amount of capital they have amassed after the pandemic.

Mattel completed its corporate turnaround in February and has entered the “growth mode”, said the company’s CEO Ynon Kreiz. The toymaker’s sales surged 19% in 2021, though its share price remained relatively unchanged over the past year.

Mattel named Kreiz CEO in 2018. Sales have shown significant improvement since Kreiz’s appointment, which came after years of declining sales and losing key licensing rights. Kreiz has helped Mattel to repair its relationship with Hollywood studios and retailers since his arrival. He also closed down a third the number of employees at the company.

Earlier this year, Mattel obtained licensing rights to make toys based on Disney’s princess characters such as Anna and Elsa from the popular “Frozen” franchise.

By Senad Karaahmetovic