Toy and children’s product distributor PRG Retail Group has signed a long-term agreement with WHP Global, the parent company of leading toy brand Toys’R’Us.
Under the terms of the agreement, PRG has bought the assets of the former Toy’R’Us Iberia licence through its subsidiaries in Spain and Portugal.
The agreement has secured the continuity of the toy brand and employment for around 800 people in the two countries.
The deal covers 46 stores, 35 of which are in Spain and 11 being located in Portugal, as well as e-commerce platforms, a logistics centre and headquarters in Madrid and Lisbon.
The stores are expected to generate $102.2m in net sales this year through around 2.5 million transactions, 10% of them being via digital channels.
PRG Retail Group CEO Amedeo Giustini said: “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 specialised offer of toys, clothing and childcare products in highly qualified, multi-format and multi-banner stores.
“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 optimise processes, starting with those related to the purchase of goods.”
Following the acquisition, Toys’R’Us Iberia CEO Paloma Perez will remain in charge of the company.
The financial terms of the deal have not been disclosed, but WHP said that it was funded entirely using the company’s internal resources.
Earlier this month, US-based department store chain Macy’s and WHP expanded their partnership to bring the Toys’R’Us brand to more customers in the US.