Last checked at 
LONDON (Alliance News) - Character Group PLC on Thursday said it has agreed to buy a 55% stake in Danish toy distributor OVG-PROXY AS for DKK2.5 million, about GBP300,000.
Character will pay an additional GBP3 million, depending on OVG-PROXY's performance in each of the years 2018, 2019, and 2020.
The toy manufacturer & distributor said OVG-PROXY holds exclusive rights to toys which it sells to retailers in the Nordic region. For 2017, it generated revenue of GBP17.9 million and made a loss of GBP1.6 million.
Character believes the acquisition of OVG-PROXY will enable it to extend its European reach, potentially enable frictionless access to EU markets post-Brexit.
"We are delighted to secure a formal working partnership with the team at PROXY. Having known and worked with them for a number of years we have recognised that there are many opportunities to enhance our current market positions," said Character Joint-Managing Director Jon Diver.
"PROXY is very excited to have Character on board as a major investor in our business," added OVG-PROXY Chief Executive Morten Geschwendtner.
"This partnership allows us to work more closely with a well-respected international toy business and opens new opportunities."
In addition, Character said its Nordic unit will provide a short-term loan facility to OVG-PROXY of DKK2 million and further DKK12 million loan facility at the end of November. These loans are being provided to refinance certain existing facilities utilised by OVG-PROXY, Character said.
Upon completion of the transaction, OVG-PROXY will be 55%, 35%, and 10% owned by Character, Kidz AS, and Wamami Holding ApS respectively.
Character shares were untraded on Thursday, last quoted at 502.00 pence each.
