Bridgepoint explores sale of childrenswear and toy chain Smyk

A beauty contest for a financial advisor was held earlier this year, two of the sources said. An advisor was expected to be selected at the end of April, one of them said.

Bridgepoint and Smyk did not reply to requests for comment.

The sponsor, which acquired Smyk in early 2016 for the equivalent of EUR 247m, has been scaling back its Polish presence and selling off portfolio companies in recent years, one of the sources said.

Smyk filed for an IPO in 2H18, as reported, but did not proceed with the offering. A repeat of the IPO is unlikely now due to the state of the capital markets, one of the sources said.

While Smyk is an established company with a strong brand that is well known locally, it has no obvious buyers and may not be an easy sale, all three sources said. However, its selling points include a growing online presence, two added.

UK-based peers or Asian strategic players could take a look, one source said, while another speculated it could be a fit for the pan-European discount retailer Pepco Group. Poland-based financial investors Cornerstone Investment Management and Griffin Capital Partners, which already hold a small minority interest each, could show interest if no other bidders are found, two of the sources said.

According to its tax disclosure statement, Smyk posted revenues of PLN 1.46bn (EUR 312m) with a taxable profit of PLN 44.4m in 2020.

Established in communist-era Poland in 1977, Smyk now has 227 locations across the country selling toys, stationery and school supplies and children's fashion, including footwear. It also has a minor physical presence in Romania and Ukraine, with several stores in each country.

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