Bridgepoint Zl1 billion acquisition of Smyk Group

Overview:

• Bridgepoint Capital—a pan-European private equity investor—has acquired Smyk Group in a Zl1 billion ($262 million) deal from former owner Empik Media & Fashion (EMF).
• The investment was made by Bridgepoint Europe V, a €4 billion European middle market buyout fund. Bank debt for this transaction was provided by Pekao, and Cornerstone Partners of Poland will take a small minority in the Bridgepoint-led acquisition.
• The acquirer aims to support Smyk's growth through further store roll-outs, boosting its multi-channel offering and expanding its franchise and wholesale operations.
• The sale of Smyk was the largest private equity transaction in Q1 2016 in Central and Eastern Europe (excluding Russia). It was a multi-jurisdictional transaction that covered Smyk's operations in Poland, Germany, Russia, Romania and Ukraine.
• The transaction required a number of specific carve-out actions prior to completion, including repayment and refinancing of EMF's financing provided by six banks and bondholders.
• Founded in 1952, Smyk Group is a retailer focused on children's clothing, toys and accessories, and operates 125 stores in Poland. 

Adam Majeed - Regional editor