L Catterton reportedly submits acquisition bid for Barbie owner Mattel

LVMH-backed private equity firm L Catterton is believed to have submitted an acquisition proposal for toy maker Mattel, a move that could encourage other suitors to also step forward with bids.

According to anonymous sources for Reuters, while such a bid is believed to have been made, there is no guarantee that Mattel will explore the possibility of a sale.

Despite the commercial success of the Barbie movie last year, Mattel has been struggling to gain traction in the way of financials and shares, which had lost 23 percent of their value in the last 12 months, the media outlet noted.

The cause has been attributed to a decline in demand for its toys. The group instead looked to lean in on media partnerships for its portfolio, namely in the way of fashion-centric collaborations for Barbie.

These, however, were not reflected in the group’s latest financial report, in which Mattel posted a loss for Q1, prompting an activist investor to call on changes, including exploring options for a number of its products.

L Catterton, meanwhile, has been expanding its investment portfolio of consumer brands since its launch in 1989. From 2016, the firm has also partnered with LVMH and the family firm of the luxury group’s CEO Bernard Arnault, to which it sold a stake.