Sun Europe makes €100m Spanish toy play

The turnaround specialist has made its debut in Spain, acquiring toy manufacturer Famosa after an eight-month process.

Sun European Partners, the European affiliate of Sun Capital Partners, has sealed its maiden Spanish deal – the acquisition of toy manufacturer Fábricas Agrupadas de Muñecas de Onil, also known as Famosa.

Financial details were not disclosed, but a source with knowledge of the process pegged the enterprise value at €100 million.

Sun, which has inked seven European deals this year, acquired 100 percent of the equity after an unusually protracted process, beginning in October last year.

Sun progressed through a first round of bids into exclusive talks in late December. The process subsequently took a further seven months to complete due to a complicated situation, with multiple senior and junior creditors and a number of Spanish savings banks – or cajas – in the capital structure, one of which had gone into administration.

Paul Daccus, the London-based principal who led the deal for Sun, said the firm normally seeks to complete transactions within 30 days from start to finish, pointing to the acquisition of furniture retailer SCS in 2008, which took just 10 days.

Sun’s investment in Famosa will result in the toy manufacturer’s senior debt levels being reduced from €190 million to €37 million.

“We have worked hard with the existing stakeholders to find a solution that ensures Famosa is well placed for a sustained period of profitable growth,” said Daccus in a statement. “I believe we have achieved that.”

The investment was made from Sun’s $5 billion fifth fund, which closed in 2007. Sun European Partners is based primarily in London, with offices in Frankfurt and Paris.