Mattel Acquires HIT Entertainment
Playthings Staff -- Gifts and Dec, 10/24/2011 12:18:51 PM
El Segundo, CA - Major toy vendor Mattel Inc. entered into an agreement to acquire HIT Entertainment for $680 million in cash from a consortium led by private equity firm Apax Partners funds. HIT Entertainment owns preschool brands Thomas & Friends, Barney, Bob the Builder, Fireman Sam and Angelina Ballerina. The transaction is expected to be financed with a combination of cash and debt and is expected to close in the first quarter of 2012. The acquisition does not include HIT Entertainment's interest in the Sprout cable network station. 
Lets Go Thomas
HIT currently earns more than $180 million in revenues. Mattel currently markets many Thomas & Friends toy products under a license from HIT which extends through 2014. Mattel's global sales of Thomas & Friends die-cast and plastic toys are more than $150 million. The current wood license expires at the end of 2012, at which time Mattel expects to add that line of business to its portfolio. Historically, the sales of wood-based toys have been around half the size of the plastic and die-cast business.
Robert A. Eckert, chairman and CEO of Mattel, said in a statement, "With more than half of the Thomas & Friends revenue generated from non-toy products, this transaction will marry Mattel's global marketing, distribution and brand management capabilities with HIT Entertainment's global programming and licensing expertise to accelerate growth of the combined portfolio."
Rumors of the deal first broke last week in the Wall Street Journal.
We would love your feedback!
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
