Mattel to get 'Thomas & Friends' Maker HIT Entertainment for $680 Million

NY - Toy giant Mattel stated Monday it's decided to acquire U.K. kids entertainment producer and right owner HIT Entertainment, noted for Thomas the Tank Engine, amongst others, for $680 million in cash from the consortium brought by private equity finance firm Apax Partners. The offer gives Mattel more contact with television and video production. HIT's preschool brands include Thomas & Buddies, Barney, Bob the Builder, Fireman Mike and Angelina Ballerina, most of which are featured in Television shows and video releases. HIT is another part-who owns round-the-clock U.S. preschool funnel PBS Kids Sprout along with Comcast, PBS and Sesame Workshop. Apax had bought the organization for 489 million pounds ($890 million) in 2005. Using more than $180 million in annual revenue, the businesses stated HIT is among the biggest independent proprietors of intellectual property for young children. Mattel already marketplaces many Thomas & Buddies toy items within license from HIT that runs through 2014. Mattel stated Monday that it is global sales of Thomas & Buddies die-cast and plastic toys count a lot more than $150 million, and also the acquisition will let it still expand and grow the merchandise lines. Mattel will even add wood-based toys, that are under license with the finish of 2012, to the toy line by 2013, saying sales here have been in existence half the sales from the plastic and die-cast business. "Mattel may be the right home for Thomas & Buddies" stated Mattel chairman and Boss Robert Eckert. "This giant brand is joining the ranks of these legendary brands as Barbie dolls, Hot Wheels, Fisher-Cost and American Girl. Thomas & Buddies routinely ranks one of the world's leading preschool toys." Added Eckert: "Using more than 1 / 2 of the Thomas & Buddies revenue produced from non-toy items, this transaction will marry Mattel's global marketing, distribution and brand management abilities with HIT Entertainment's global programming and certification expertise to accelerate development of the combined portfolio." Stated Jeffrey Dunn, leader and Boss of HIT: "Mattel is an excellent steward of brands along with a great home for that outstanding qualities HIT is promoting and grown, including Thomas & Buddies. It's fitting the world's premier toy company should become who owns the earth's premier pre-school property." Thomas & Buddies is the main licensed preschool property on the planet, with television programming, home theatre items, toys along with other consumer items available around the world. The transaction is anticipated to near the coast the very first quarter of 2012 and isn't envisioned having a fabric effect on Mattel's 2012 earnings, while being "progressively accretive as the advantages of possessing these brands are reflected in Mattel's results," the businesses stated. Email: Georg.Szalai@thr.com Twitter: @georgszalai Related Subjects