Giochi Preziosi is perhaps one of the most famous brands in Europe. The company founded by Enrico Preziosi from Brianza finds itself facing a decisive crossroads in its history. The group seems likely to be absorbed by the Chinese Superhisen group, already an industrial partner of the company. More than a transfer already defined by the founder and CEO of the Group, this is an advanced negotiation that will change the future balance of the company.
How Giochi Preziosi was born and why it risks failing
From a small warehouse on the outskirts of Milan in the Seventies, Enrico Preziosi gradually built a group that would become one of the main European operators in the toy sector. The growth model was based on three elements:
- strategic acquisitions;
- strong distribution capacity;
- exploitation of licenses linked to highly successful brands.
Iconic products such as Gormiti, Cicciobello and Winx have ensured a stable presence of the group not only on the Italian but also international market. The group’s expansion also continues through foreign operations, including the acquisition of the Spanish Famosa in 2019, strengthening the group’s presence in Europe.
But rising logistics costs and ongoing crises along supply chains have eroded Giochi Preziosi’s profit margins, as it is heavily dependent on Asian production. The blockade of international transport and the increase in logistics costs, including for product storage during the pandemic years, have had a heavy and negative impact on the group. According to what was reported by the CISL at the beginning of April, at least 300 workers risk staying at home.
Superhisen buys Giochi Preziosi?
The dialogue with the Chinese group Superhisen fits into this context. More than a simple financial operation, it would be an industrial integration between the Asian manufacturer and its partner.
According to information circulating, the project would involve a capital increase of around 80 million euros and a progressive entry of the Chinese partner into the administration of the group. However, it is important to note that this is not a closed operation. The structure of the agreement is being defined and has not yet been formalised.
The working hypothesis would be to strengthen business continuity through new finance and to build an integrated platform between Asian production and European distribution. DeA Capital and the Spanish Famosa could also be included in the operation.
How much is Giochi Preziosi worth today
Despite the difficulties, Giochi Preziosi remains a brand with strong recognition in the European toy market. The value of the group today is linked to the solidity of the brand portfolio, the commercial network and the licenses built over time.
However, the overall financial position and level of debt have reduced the potential value. For this reason, the operation that involves the capital of the Chinese group is more aimed at stabilizing the debt than at generating direct profits for shareholders.
What the Giochi Preziosi case says about the European industrial system
The story is part of a broader framework of transformation of global industrial supply chains. The outsourcing to Asia of part of the production carried out by many European companies is aimed at obtaining immediate advantages in terms of production costs. However, as the recent pandemic and the latest geopolitical events show us, production is exposed even more to the risk of holes in the supply chain, at every level.
