Spielwarenmesse: Character acquires 55% equity holding in Nordic based toy company, Proxy

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Character acquires 55% equity holding in Nordic based toy company, Proxy

18. October 2018 11:20 h:

The current team at Proxy will continue to run the business, while Jon Diver, Kiran Shah and Mike Hyde will join the board

By toyworldmag.co.uk

It is believed that the acquisition of this substantial interest in Proxy will enable the Character Group to extend its European reach, potentially enable frictionless access to EU markets post-Brexit, provide a more compelling marketing/distribution proposition for toy companies and brand owners seeking UK and EU market access and provide a vehicle for growth of the Group’s non-UK sales of its own-developed product ranges/resources.

Proxy, which has 27 employees, currently sources products through a strong international network of suppliers and partners, including Character Group. All product lines are sold exclusively in the Nordic region (principally Denmark, Sweden, Norway and Finland) by Proxy, with all sales to the top five customers managed in-house through its own sales force. Smaller accounts are managed through distribution partners in the markets.

The business is headed by CEO Morten Geschwendtner and CFO Mikkel Kjærsgaard, both of whom have over 25 years of experience in the toy industry and have also worked in collaboration with the Character team over several years. The current team at Proxy will continue to run the day to day business. To provide additional resource and skills to the senior team, Jon Diver, Kiran Shah and Mike Hyde (all executive directors of the company) will join the operating board of Proxy.

The purchase price comprises an initial cash consideration of DKK2.5m (approximately £300,000), with further “earn-out” consideration of up to DKK25m (approximately £3m) payable, depending on performance, in each of the years ending 31st December 2018, 2019 and 2020. The acquisition is expected to be earnings enhancing in the first full year in the enlarged Group.

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