Baring Vostok Capital Partners Rumored To Be Acquiring Children’s Entertainment Brand ‘Smeshariki’
Russian private equity group Baring Vostok Capital Partners is rumored to be closing in on an acquisition of approximately 45% of Riki Group, the 100% owner of the children’s animation and products holding company Smeshariki.
Smeshariki, which began as a producer of children’s cartoons, has grown into a children’s entertainment and products empire consisting of 9 companies and employing more than 400 people.
The group produces several television cartoon series, including “Smeshariki” and Safety Alphabet, and has multimedia publishing, interactive entertainment, licensing and retail divisions.
The group has approximately 25% of Russia’s total television viewership (including both children and adults), has sold over 4 million Smeshariki branded DVD’s and audio CD’s, has a catalog of over 300 different books with a circulation of over 17 million copies; and publishes a children’s magazine with a monthly circulation of 155,000.
Over 40 Russian and international companies have been licensed to produce 3,000 separate products under the Smeshariki brand name, including soft toys, board games and puzzles, computer games, household goods, sports and recreation accessories, cosmetics and baby products.
The company owns and operates 12 Smeshariki-branded shops in Moscow, St. Petersburg, Rostov-on-Don, Kaliningrad and Kazan. They are planning to open 300 such stores in Russia.
Mobile telephone operator Megafon recently launched a Smeshariki-branded children’s mobile tariff plan.
Smeshariki is also the only Russian cartoon broadcast in the United States, on the CW Network using the name GoGoRiki. It is also broadcast in Germany and Ukraine.
According to Kommersant, the private equity deal could be closed by March. Smeshariki was rumored to be seeking a $100 million valuation, but BVCP has reportedly valued the firm at $90 million and is planning to provide an additional $10-15 million in debt financing to the holding company – representing a total commitment of $50-60 million.
The name Smeshariki is derived from “smeshnye” meaning “funny”, and “shariki” meaning “little balls”. The characters are stylized rounded animals.
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