France's toy maker agrees to takeover by US rival

17th April 2007, Comments 0 comments

PARIS, April 17, 2007 (AFP) - Troubled French toy maker Smoby-Majorette, under bankruptcy protection since March 19, said Monday it had agreed to be taken over by US-based rival MGA Entertainment.

PARIS, April 17, 2007 (AFP) - Troubled French toy maker Smoby-Majorette, under bankruptcy protection since March 19, said Monday it had agreed to be taken over by US-based rival MGA Entertainment.

Smoby-Majorette, which describes itself as Europe's second-biggest toy maker, said the deal would see the founding Breuil family sell their stake in the group and foresaw a month during which MGA would finalise the terms of its takeover.

Over the next month, MGA would supply "the financial means via a banking intermediary to finance the working capital requirements of the companies of the group placed under a judicial safeguard procedure."

The group has been under a judicial safeguard procedure since last month, a French form of bankruptcy protection.

MGA has faced competition from two other companies interested in buying Smoby, including Chinese manufacturer Cornerstone and a group of creditors, led by Deutsche Bank.

The group, the biggest French manufactuer of toys, was founded in 1924 and employs 2,750 people worldwide.


Copyright AFP

Subject: French news

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