Private equity firm Partners Group is engaged in restructuring discussions that could see control of German toy manufacturer Schleich transferred to its creditors, according to a report by Bloomberg citing sources familiar with the matter.
The lenders – which include Investec and HIG Capital – are reportedly proposing a €5m capital injection to address the company’s near-term liquidity requirements. Blackstone is also participating in the talks in its capacity as a loan manager for other institutional investors, sources said.
Under the proposed plan, creditors may assume temporary control of Schleich, paving the way for a structured sale process to identify a long-term owner. Discussions remain ongoing and outcomes could still shift, according to people close to the situation.
Schleich, known for its production of plastic figurines including Smurfs, animals, and Harry Potter characters, has engaged Ankura Consulting Group to advise on the restructuring. Ernst & Young has also been brought in to provide an independent assessment of the company’s business viability.
According to Bloomberg data, Schleich has a €175m first-lien term loan and a €40m revolving credit facility, both maturing in 2026. The debt was used to support Partners Group’s acquisition of the business from Ardian in 2019, when Schleich was reportedly generating EBITDA of approximately €40m.
In 2023, the company saw revenues decline by 15% to €234m, driven by weakening global toy demand. Persistent consumer spending headwinds and trade tensions – particularly tariffs affecting its China-based supply chain – have further weighed on performance, particularly in the US market.
Spokespeople for Partners Group, Schleich, Investec, HIG, Blackstone, Ankura, and EY declined to comment.
