Mattel buys Hit for $680 mil

Toymaker Mattel Monday introduced expects to get Hit Ing. for $680 million in cash from U.K. private equity finance finance firm Apax Partners. Hit, in the U.K., with annual revenue around $180 million, has a premier global portfolio of preschool brands, including Thomas & Pals, Barney, Bob the Builder, Fireman Mike and Angelina Ballerina. El Segundo, Calif.-based Mattel may be the organization behind Barbie dolls dolls, Hot Wheels, American Girl and many entertainment-inspired toy lines. Speculation of a deal involving the two emerged the other day. Mattel already features a contract with Hit through 2014 to license certain plastic Thomas products, whose global sales total greater than $150 million, the business mentioned. The sale, it mentioned, enables still it expand the products and reunite two key items of the Thomas toy selection, the plastic and die-cast toys while using wood-based business. "Hit Entertainment has most likely probably the most loved and reliable preschool brands in the world and under Mattel's leadership, I anticipate seeing them grow to elevated levels," mentioned Hit Boss Jeffrey Dunn. "Mattel is a superb steward of brands, together with an excellent home for your outstanding characteristics Hit is marketing and grown." The acquisition does not include Hit's fascination with the cable network station Sprout. The transaction is predicted being funded with a mixture of cash and debt, and chances are it will close to the coast the initial quarter of 2012. It isn't imagined getting a cloth impact on Mattel's 2012 earnings, but is predicted being progressively accretive as the benefits of having these brands are reflected in Mattel's results. "Mattel might be the best home for Thomas and pals," mentioned Mattel leader Robert Eckert. Hit Boss Jeffrey Dunn added: "It's fitting the earth's premier toy company should become who is the owner of our planet's premier pre-school property." Hit, which was created with the late British media entrepreneur Peter Orton in 1989, was bought by Apax for $890 million in 2005. Inside the succeeding years the children content business remains buffeted by lowering DVD sales and questions over future TV ad revenues. Contact Variety Staff at news@variety.com