HgCapital acquires German toy company(2)

The sector-focused buyout group has sealed its sixth German deal by buying Schleich, a manufacturer of high quality plastic toys.

HgCapital, a European buyout firm, has bought a majority stake in German toy manufacturer Schleich for an undisclosed sum. HgCapital’s stake was previously held by three family groups.

Paul Kraut, a member of Schleich’s current management, will retain a minority interest in the business.

The structure of the company will not be affected by the transaction, and the existing management of Schleich will be retained, the firm said.

This transaction is the sixth investment for HgCapital’s German team

Schleich, with marketing and sales subsidiaries in Canada, France and the UK, employs about 250 people and has nearly doubled revenues between 2003 and 2005.

Current year revenues are expected to rise materially to about €80 million, with more than half of the revenues coming from outside Germany.

Doertenbach & Co. advised Hg and Clifford Chance gave legal advice. Royal Bank of Scotland arranged the debt facilities. The family owners of Schleich have been advised by WGZ Corporate Finance Beratung and with legal advice from Menold Bezler.