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Nazca acquires a stake in Eurekakids

NAZCA CAPITAL  has just signed its first deal for Fund Nazca III, recently closed in April 2011, with the acquisition of a majority stake in the Spanish company EUREKAKIDS, through the acquisition of shares and a capital increase. Erik Mayol, founder of EUREKAKIDS, will continue to lead the project as Executive Chairman and relevant shareholder of the company.

EUREKAKIDS designs, manufactures and sells quality educational toys which aim to stimulate 0-8 year old kids’ creativity and development.

EUREKAKIDS was founded in 2002 and has experienced a fast expansion opening up to 100 stores in 5 countries and with a significant on-line business growth. EUREKAKIDS has revenues of €20 Million and more than 100 employees.

Headquarters located in Gerona (Spain) include a 9.000 square metres warehouse from which products are distributed to any place in the world. The company sells more than 3.500 references including own as well as third parties products.

EUREKAKIDS’ 40% year-on-year growth during 2008-2010 is based on (i) a successful franchise model becoming one of the most demanded Spanish franchises in 2010, and (ii) its e-commerce platform www.eurekakids.net.

NAZCA CAPITAL, apart from its experience in developing successful retail high growth projects such as Svenson, Rodilla and Lizarrán, will contribute with the necessary resources to execute an ambitious on-line project and a national and international expansion plan with the opening of 100 stores in the next 5 years.

Carlos Carbó from NAZCA has said “Investing in companies with high exposure to consumption is not easy nowadays. We believe that an important part of the potential growth in retail projects, as in Eurekakids, will come from the capacity to grow on-line and internationally”

Erik Mayol from EUREKAKIDS has commented “Nazca’s incorporation will provide resources to maintain our growth rates and help Eurekakids become one of Europe’s most recognized toy brands”.

Eurohold has acted as financial advisor to the seller. Legal advisors have been Ferreras Abogados for the acquirer and Vialegis for the seller. The legal, fiscal and financial due diligence has been done by KPMG.