Toys”R”Us Secures Buyer in Central Europe

Ireland’s Smyths Toys Superstores has entered into a definitive deal to acquire Toys”R”Us’s operations in Germany, Austria and Switzerland for an estimated aggregate purchase price of €79 million ($96.6 million).

Toys”R”Us’s sale of its Central European business is subject to the approval of the U.S. Bankruptcy Court for the Eastern District of Virginia. Under the agreement, which includes a cash-free and debt-free basis, Smyths Toys plans to rebrand the stores under their own banner.

Meanwhile, subsidiary Toys”R”Us-Delaware has signed a stalking horse share purchase deal with Fairfax Financial Holdings to sell the equity interests of Toys”R”Us Canada. If the transaction is approved, the shares would be sold for a base purchase price of C$300 million ($234 million).