Thomas the Tank Engine owner grabbed by Mattel - Evening Standard

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The British owner of Thomas the Tank Engine, Bob the Builder and
Angelina Ballerina was today snapped up by US toys giant Mattel in a
$680 million (£426 million) deal.
That is less than the £489 million which private-equity firm Apax paid
for HIT Entertainment in 2005 and considerably less than the £1
billion price tag some bankers were suggesting when it was first put
up for sale again a year ago.
Mattel has been negotiating the deal with Apax since March as the
values of other entertainment brand rights companies have tumbled.
HIT has outstanding debts of $560 million and recently renegotiated
terms with its banks leading to it paying a higher interest rate.
Mattel already markets much of the Thomas range under licence from
HIT, which account for annual sales of more than $150 million.
The takeover will allow it to bring all the Thomas products, notably
the wooden range, in house alongside its toy brands like Barbie and
Hot Wheels.
HIT's chairman is the former BBC director general Greg Dyke.
Thomas has seen off many newcomers in the pre-school children's market
and remains the number one licensed brand in that market in the world.
"HIT Entertainment owns some of the most loved and trusted pre-school
brands in the world and, under Mattel's leadership, I look forward to
seeing them grow to even greater heights," said Jeffrey Dunn, chief
executive of HIT. The purchase price represents 9.5 times HIT's
earnings before tax, interest and depreciation.
Rival group Chorion, which owns rights to Noddy and the Mr Men, is
being broken up on behalf of its banks.

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