Fast growing toy and games distributor bought by German investor

German gaming and toy investor Saga Alliance has invested in Blackburn-based distributor Heathside to support expansion across Europe, focusing first on France and Germany.

Based at Walker Park close to the M65, Heathside is a distributor and manufacturer of toys and collectibles with operations in the UK and the Netherlands. 

Saga hasn’t disclosed how much they have paid, but in the year ending December 2023 Heathside made £5,292,017 in pre-tax profits on turnover of £27,560, 416.

Heathside was founded in 2005 by John Nelson and Robert Myers and describes itself as a developer, manufacturer and distributor of Licensed Consumer Products operating through four separate businesses, Master Replicas, Khadou, Heathside Trading and Paddys Pallets.

The business experienced a surge in profit and turnover last year due to expansion of its pop culture and licence-based brands, Khadou and Master Replicas. 

In 2023 Heathside established an agreement with Toho International to become a licensee for the Godzilla brand.

Other brands it works with include South Park, Minecraft, Deddy Bears, Five Nights at Freddy’s, Star Trek, Sonic, Molang, Doctor Who, Only Fools and Horses, Foundation, Stargate, Dune, Teenage Mutant Ninja Turtles, Care Bears, Sesame Street, Harry Potter, Battlestar Galactica and many others.

Saga Invest will expand Heathside’s operations across Europe, starting with France and Germany.

Darren Epstein from Heathside said: “We were approached by a number of companies at the back end of 2023 and the shareholders decided to move to exclusive discussions with Saga during the Nuremberg Toy Fair. Given the team’s background and their focus on growth, it made sense to move forward with Saga. We wanted partners who would bring focus to what we have built at Heathside over the years. We believe that over the next 12 months, our retail partners will see even more reason to work with us on our portfolio of product ranges.”

Gregory Benassar, Saga Invest founder with fellow ‘pop culture veteran’ Alexis Desplats, said: “We are building a Pan-European distribution and manufacturing solution at the intersection of toys, collectibles and other licensed goods.”

Describing Heathside as “a very successful company within all these segments,” he added: “we are entrepreneurs at heart, and we see that as core to the Heathside business. We wish to continue and enhance that philosophy.”

Following the sale, Robert Myers, a long-standing figure in the toy business, will retire. As of yesterday, 19 September 2024, Myers, Lisette Myers and John Nelson resigned as directors of Heathside Trading Limited, while Saga Invest’s Gregory Benassar and Alexis Desplats were registered as directors.

Myers said: “Under the management of Saga and the rest of the leadership team, I know the business is being left in the most capable of hands, and I look forward to following the company’s success moving forward.”

John Nelson will serve as interim CEO until the beginning of 2025. Gregory Benassar will become co-CEO, with Darren Epstein (EVP Global Business Development) and Max Nelson (head of Sales) remaining to ensure continuing growth within the business.

‘’The experience of these veterans of pop culture formats proves to be a very exciting prospect for the future growth of Heathside, Khadou and Master Replicas,’’ added Darren Epstein.

Saga Invest describes itself on its website as “like true business detectives” and that they “approach every new acquisition and project with a business analysis and strategic consultancy designed to help companies in the board games, toys, and publishing industries achieve their full potential.”

Adding: “Our approach includes thorough market analysis conducted like true business detectives, identifying key opportunities, and developing innovative strategies to stay ahead. With our expertise, your company can navigate the industry’s complexities and thrive in a competitive landscape.”

Lawyers from Addleshaw Goddard advised Saga Invest on the acquisition of Heathside, led by Ben Davies in Manchester and Antoine Martin in Paris.

Beever and Struthers advised Heathside on the deal with a team led by corporate finance director Dean Curtis, with support from corporate finance manager Patrick Wilson, and tax partner Ann Bibby.

Legal advice was provided by Farleys, led by corporate partner Debbie King and associate solicitor Amy Jones.