Challenger (France) - Dec 2007

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01 December 2007

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Initiative & Finance has acquired around 35% of stimulating toys maker Challenger, as part of an MBO. The deal means an exit for EPF Partners, which had made a growth capital investment in February 2000, in return for a 40% stake. The latest transaction was sourced through an auction run by PricewaterhouseCoopers aimed at financial and industrial bidders. Fortis arranged a strip of amortising debt and provided a bridge loan, alongside SNVB. The debt package represented around half of the deal’s value. Both an LBO and a trade sale have been suggested as possible exit routes.

Company

Challenger specialises in colourful and stimulating toys under the brands Babysun, Babysun Nursery and Boikido. The company subcontracts the manufacturing of most of its products, which it then distributes. The firm also designs its own range of wooden toys under the brand Boikido. Challenger has seen three-fold organic growth since 2000, reaching revenues of €21m in 2007. The business aims to grow further by developing new products, and possibly expanding into room accessories, clothing and larger objects such as pushchairs. Challenger will also seek to distribute its Boikido range abroad. Founded in 1994, the company now employs around 60 staff.

People

Valérie Bouillier, Emmanuelle Cappello and Quentin Ducouret worked on the transaction for Initiative & Finance, while Isabelle Hermetet negotiated the exit for EPF Partners. Pascal Landais and Olivier Tochon arranged the debt for Fortis Banque and SNVB, respectively. Frank Cohen-Aloro is Challenger’s CEO.

Advisers

Equity - ACA, Jean-Pierre Mouturat (Financial Due Diligence)Equity - Assurances Thiebaud SA, Jean-François Raybaud (Insurance Due Diligence)Equity - Lamartine Conseil, Olivier Renault (Legal)Equity - Victoria & Compagnie, Alain Fabre (Corporate Finance)Vendor - BM & Associés, Gilbert Métoudi (Corporate Finance)Vendor - Constantin Associes, Benoît Pimont (Financial Due Diligence)Vendor - Medus Devaux Sorensen, Jean-Louis Médus (Legal)Vendor - PricewaterhouseCoopers Corporate Finance, Jean-Pascal Clédat (Corporate Finance)