Nazca incorporated in the capital of Eurekakids
Nazca Capital undertakes the first operation of Nazca Fund III, finalised in April 2011, with the acquisition of a majority shareholding in the capital of the Spanish company EUREKAKIDS through the purchase of shares and a capital increase. Erik Mayol, founder of EUREKAKIDS, will continue to lead the project as Executive President and significant shareholder of the company. EUREKAKIDS designs, manufactures and sells quality educational toys with the objective of stimulating the creativity and development of children from 0-8 years old.
EUREKAKIDS began its activity in 2002 and since then has undergone a process of rapid expansion, with 100 stores in 5 countries and significant growth of the online business. EUREKAKIDS has sales of 20 million euros and has over 100 employees. The company has a 9,000m2 central headquarters located in Girona, from which it distributes its products around the world. It has over 3,500 products, including those designed and manufactured itself and products of third party brands. The growth of EUREKAKIDS, 40% annually from 2008-2010, is based on (i) the success of a franchise model which has become one of the most requested brands of 2010, and (ii) its commitment to online business through its website www.eurekakids.net .
Nazca Capital, in addition to its proven experience of obtaining great growth and returns in retail projects such as Svenson, Rodilla and Lizarrán, will contribute the necessary resources for developing an ambitious online project, as well as undertaking a national and international expansion of the network of stores, with the opening of over 100 additional stores in the next 5 years. Carlos Carbó of NAZCA states “Investing in companies with high exposure to the evolution of consumption is not easy in the current environment. We believe that a significant part of the potential growth of retail projects, as in the case of Eurekakids, will be due to their capacity for growing online, as well as internationally.” According to Erik Mayol of EUREKAKIDS “Nazca’s incorporation in the capital will contribute the resources for maintaining the pace of growth and make Eurekakids one of the main brands of toys in Europe.” Eurohold acted as financial advisor for the seller. The legal advisors intervening were Ferreras Abogados for the buyer and Vialegis for the seller. Additionally, the legal, fiscal and financial due diligence was carried out by KPMG.