Mattel buys Hit for $680 mil

Toymaker Mattel Monday introduced intends to acquire Hit Ing. for $680 million in cash from U.K. private equity finance firm Apax Partners. Hit, from the U.K., with annual revenue around $180 million, is the owner of a premier global portfolio of preschool brands, including Thomas & Buddies, Barney, Bob the Builder, Fireman Mike and Angelina Ballerina. El Segundo, Calif.-based Mattel is the organization behind Barbie dolls, Hot Wheels, American Girl and several entertainment-inspired toy lines. Speculation in regards to a deal between your two emerged a week ago. Mattel already includes a contract with Hit through 2014 to license certain plastic Thomas items, whose global sales total a lot more than $150 million, the organization stated. The offer, it stated, allows it still expand the items and reunite two key bits of the Thomas toy selection, the plastic and die-cast toys using the wood-based business. "Hit Entertainment is the owner of probably the most loved and reliable preschool brands on the planet and under Mattel's leadership, I anticipate seeing them grow to increased levels," stated Hit Boss Jeffrey Dunn. "Mattel is an excellent steward of brands, along with a great home for that outstanding qualities Hit is promoting and grown." The purchase doesn't include Hit's curiosity about the cable network station Sprout. The transaction is anticipated to become funded with a mix of cash and debt, and it is likely to near the coast the very first quarter of 2012. It's not envisioned having a fabric effect on Mattel's 2012 earnings, but is anticipated to become progressively accretive as the advantages of possessing these brands are reflected in Mattel's results. "Mattel may be the right home for Thomas and buddies," stated Mattel leader Robert Eckert. Hit Boss Jeffrey Dunn added: "It's fitting the world's premier toy company should become who owns the earth's premier pre-school property." Hit, that was produced through the late British media entrepreneur Peter Orton in 1989, was bought by Apax for $890 million in 2005. Within the succeeding years the kids content business continues to be buffeted by decreasing DVD sales and questions over future TV ad revenues. Contact Variety Staff at news@variety.com