Sun Capital exits Famosa Toys to trade

Alessia Argentieri
28 June 2019

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US-based private equity firm Sun Capital Partners has sold Spanish toy producer Famosa Toys to Italian toy company Giochi Preziosi.

The company is valued at around €150-200m.

Following the closing of this deal, which is expected in the autumn, Gochi Preziosi plans to list on the Italian stock exchange by the end of the year. The company generates turnover of around €500m and EBITDA of approximately €64m.

US-based Sun Capital bought Famosa in May 2010 from bank creditors a year after the group's former backer Vista Capital sold its equity holding for a nominal €1.

The deal effectively reduced the company's indebtedness from around €200m to approximately €50m. In addition to the new equity from Sun Capital, the group's 24 creditors were said to have written off more than 50% of their outstanding loans.

Previous funding
Inveralia, Torreal and AC Desarrollo bought Fábricas Agrupadas de Muñecas de Onil Sociedad Anónima (Famosa) in a deal valued at around €150m in November 2002. Inveralia took a 31% stake in the company, while Torreal and AC Desarrollo acquired a 24.5% shareholding each. The remaining 20% of the equity was retained by management led by Jaime Ferri and a number of the founding families.

Vista Capital acquired Famosa for €150m in 2005, in a deal that saw Inveralia, Torreal and AC Desarrollo divest their stakes in the business, while members of the management team retained a minority holding. Following the acquisition by Vista, the business acquired Grupo Feber and Play by Play, which specialised in the manufacture of stuffed animals.

Company
Established in 1957 in Alicante, following the merger of 27 toy shops and doll factories, Famosa is headquartered in Madrid and Alicante, and specialises in toy production and distribution. The company has a presence in 50 countries worldwide, including Portugal, the UK, Italy, France, Mexico, Puerto Rico and Hong Kong.

Its most iconic products are the dolls Guendolina and Nancy, and the Quiron line of stuffed puppets. Famosa has factories located in Alicante and Monterrey, Mexico, and generates EBITDA of €20m from revenues of around €200m.

Advisers
Vendor – Lazard (corporate finance).
Acquirer – Rothschild (corporate finance).