Spielzeug: Traditionsfirma Schleich steht vor der Übernahme

The traditional toy manufacturer Schleich is facing a potential takeover. The company's lenders, including investment firm H.I.G. Capital, aim to take control of Schleich. It is rumored that financial creditors plan to convert their claims into shares, according to financial sources. H.I.G. Capital has already applied for an "indirect acquisition of a minority stake" in Schleich Group Holding at the Federal Cartel Authority.

Similar applications have been submitted to Austria's competition authority. A group of lenders intends to acquire "directly all shares of Schleich Group Holding" as part of a financial restructuring, it is stated in those filings. H.I.G. declined to comment on the process. The business, founded in 1935 by Friedrich Schleich, is one of Germany's largest and most well-known toy manufacturers.

With characters from popular TV shows like "Die Schlümpfe," "Biene Maja," and "Lucky Luke," as well as a variety of animals, Schleich has captured children's rooms across numerous countries. Since 2019, Schleich has been part of the Swiss private-equity firm Partners Group, which had acquired the company from the French investment firm Ardian.

The Swiss had envisioned developing the family business into a global brand, rapidly expanding the dinosaur, unicorn, and animal figure business. They aimed to lead the company into a new phase of international growth, further developing the brand for a global audience and continuing to build partnerships with online and brick-and-mortar retailers worldwide, according to a press release.

However, this never materialized. Downfall After the Corona Boom When the pandemic struck and children were forced to spend more time at home, initial revenue surged significantly. But then came the decline, as financial figures from Schleich's holding company "SCUR-Alpha 1092" show: In 2023, the company's revenue dropped by 14 percent compared to the previous year, reaching 235 million euros.

2024 seemed to continue the downward trend, with revenue at around 220 million euros. The management implemented stringent cost-cutting measures, including moving its headquarters from Schwäbisch Gmünd in eastern Baden-Württemberg to Munich. A new service center was established in Prague, the Czech capital, and production of the toys, which had already been outsourced, continued abroad.

The company also experienced internal changes, with Manfred Ziegler taking over the CEO position over a year ago. He emphasized optimizing operations in collaboration with lenders and shareholders, improving customer service, and strengthening the company's cost base. At that time, a debt deal was reportedly in the works, although tax issues delayed its implementation.

Additionally, a sanctioned Russian company was reportedly among the creditors, complicating the restructuring process. Partners Group declined to comment on the impending shareholder change when contacted for this article. This story was first published in Wirtschaftswoche.