After months of industry speculation, it looks like Apax Partners is finally ready to sell Hit Entertainment, the kids studio which owns preschool brands like Thomas The Tank Engine, Bob The Builder, Pingu and Angelina Ballerina.

Apax acquired Hit in 2005 for £500m but has struggled to make much headway with the business. It is now looking to recoup its outlay by selling it to an established kids players with the resources and infrastructure to revitalise the business. Companies believed to be interested include Hasbro, Disney, Viacom, Mattel and Saban Entertainment.

Reports suggest that Apax may try to sell the business in two lots, one based around Thomas and the other based around the other preschool properties in its portfolio. Attached to either package would be Hit”s 30% stake in US kids channel PBS Kids Sprout, currently in around 50 million homes.

Although Apax has not really grown the business during its time in charge, it is still expected to make a profit on the sale, with the price-tag put between £700m and £1 billion.