Ardian sells Schleich to Partners Group in tertiary buyout

Katharine Hidalgo
10 July 2019

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Ardian has sold its majority stake in Germany-based toy manufacturer Schleich to Switzerland-based Partners Group.

The transaction was marketed based on €40m EBITDA from revenues of €185m in 2018, according to Unquote sister publication Mergermarket. More than half of its turnover comes from sales outside of Germany. The company generated sales of €106m and EBITDA of €20-25m in 2013, up from €61m in revenues in 2006.

The sale process was launched in January 2019 and also attracted Pamplona Capital Management as a potential bidder.

The acquisition was funded with equity from multiple funds and separate accounts including the firm's €3bn Partners Group Direct Equity 2016 fund.

Following the transaction, Partners Group will support the development of Schleich's online presence and invest in new product development for the company's figurine and playset offerings. The company's management team, led by CEO Dirk Engehausen, will stay on with the company.

Previous funding
In 2007, Hg, together with the management, acquired Schleich from three family groups for an undisclosed amount estimated to be more than €100m. Hg took a majority stake while management took the minority share. The firm used its HgCapital 5 fund, which closed on €950m in 2006.

In 2014, Ardian acquired Hg's majority stake in a deal valuing the company at an estimated €220m. The firm used its Axa LBO Fund V, which closed on €2.8bn in 2013. DZ Bank and LBBW provided debt facilities of €95m in a 50/50 split.

Company
Founded in 1935, Schleich manufactures a range of toys included figurines and playsets. Headquartered in Schwäbisch Gmünd, where the company produces its toys, Schleich sells its products in more than 50 countries and operates six locations.

People
Partners Group – Kim Nguyen (partner, head of private equity Europe).
Schleich – Dirk Engehausen (CEO).

Advisers
Equity – Latham & Watkins (legal); EY (financial due diligence).
Vendor – JP Morgan (corporate finance).