PRG Retail Group acquired the license of the former Toys R Us Iberia through its subsidiaries in Spain and Portugal from WHP Global.
The famous Jersey-born brand will continue to thrive in the countries, and to employ approximately 800 people. The transaction was financed entirely with internal resources of PRG Retail Group.
It includes 46 stores (35 in Spain and 11 in Portugal), e-commerce platforms, a logistics center, and headquarters in both Madrid and Lisbon. Net sales for the stores are expected to reach $102.2 million (100 million euros) in 2022 through approximately 2.5 million transactions—10% through digital platforms.
According to WHP Global and Toys R Us Chairman and CEO Yehuda Shmidman, Toys R Us currently has a global business with more than 900 branded stores and e-commerce businesses in over 25 countries.
“We look forward to working with the experienced team at PRG as we continue to execute on our overall strategy to expand the Toys R Us brand in new and existing high growth markets throughout the world,” said Shmidman.
“We are excited about this new great adventure and ready to bring to Spain and Portugal the model that we are successfully applying in Italy and with which we intend to grow to become the first hub dedicated to the family in Europe, able to propose to the customer a complete specialized offer of toys, clothing and childcare products in highly qualified, multi-format and multi-banner stores,” said PRG Retail Group CEO Amedeo Giustini.
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“To do so, we will share the experience acquired by PRG in building and managing the customer journey on an integrated system of physical and digital contact points, we will invest to renew current technological systems and optimize processes, starting with those related to the purchase of goods. Our goal is to become, also in Spain and Portugal, the first ally of mothers and growing families, from pregnancy through all stages of children’s lives,” he said.
CEO of Toys R Us Iberia Paloma Perez will remain at the helm of the company.
For the management of the transaction, PRG was advised by the international teams of E&Y and the law firm Uria Menéndez.
Further details on the financial transaction were unavailable.
Editor’s note: This story was updated at 1 p.m. ET July 25 to emphasize that PRG Retail Group acquired the Toys R Us Iberia license, corrected the spelling of Yehuda Shmidman’s name and corrected the advisory team information.