Embedded in wildly romantic landscapes: Smoby headquarters in Lavans.

The highly anticipated new issue of YO-YO magazine once again offers a terrific mix of reporting about toy production, background information about the company, portraits of employees and news from the industry. The current issue features the Smoby brand on its cover. The acquisition of the Jura, France based toymaker in spring 2008 was a milestone in the history of the SIMBA DICKIE GROUP. A variety of synergy effects with other brands are already visible. Read more.

Smoby Toys on the path to success

If you think of the Smoby acquisition as a marathon, then the runners have just passed the halfway mark. Managing Director Thomas le Paul is finally ready to take a deep breath. He is, if we stick with the running analogy, the long-distance coach in the French town of Jura. A review of what's happened up to now.

Looking confidently into the future: Managing Director Thomas le Paul in front of "Maxi Wood," the new climbing system for market launch in 2010.

Thomas le Paul's 45-minute morning commute to the Smoby Toys headquarters in Lavans-lès-Saint-Claude gives him time to reflect. There's usually not much traffic on the perfect streets, and France's Haute-Jura tends to be deserted. Quiet and very pretty, especially in summer for those who love untouched, wildly romantic nature. The fields are luscious green, the forests run unceasingly through the hilly landscape that climbs to 1,500 meters, interrupted by neat and quiet hamlets. Ecotourism is booming here in a region that invites hikers, mountain bikers and water sports fans.

"We are in the middle of nowhere here," Thomas le Paul says, smiling. That's because the managing director is a fan of this area, a little more than one hundred kilometers from Geneva, which has been his home for around 20 months. Since early August things have felt a bit different on the drive to work for le Paul, who was born in Nantes. Upon returning from a vacation he realized that he was finally having that wonderful feeling that "we'll succeed here, it'll be good, the cornerstone has been laid, we can now focus on the future and develop a vision." The vision of where the Smoby journey is headed.

Looking back on the future

Manfred Duschl describes the current situation in similar terms. As Chief Financial Officer of the Simba Dickie Group and the one who assigned Thomas le Paul responsibility for turning things around at Smoby, he needed a while to feel assured. "I'm certain that the Smoby move is going to be our masterpiece," he can say today looking back with considerably less stress on the difficult journey. "I had a lot of doubts and sleepless nights, big time," the otherwise reserved CFO openly admits.

Today CFO Manfred Duschl is thrilled about Smoby.

A reminder: Smoby was for decades France's number one toymaker, with revenues of 300 million euros at its peak. Some 2,300 employees were working at its 18 subsidiaries around the globe, including 1,000 at the center in Haut-Jura, which encompasses the Départements of Jura, Doubs and Ain. In March 2007 an overly optimistic eye for expansion and mismanagement led to a liquidity crisis at the Smoby-Berchet Group, and in autumn 2007 the group was under receivership and on the block for sale. "We naturally knew about it and had sought out information," Manfred Duschl says. That's because Smoby's portfolio covered precisely the areas that the Simba Dickie Group lacked.

In December 2007 the management team in Fürth made contact with the liquidator. By January it was ready for its first pilgrimage to France to view the factories, present itself as an interested party, and investigate whether Smoby could still be saved. Thus began the biggest acquisition in the almost 30-year history of the Simba Dickie Group. "I asked myself constantly whether we were getting too big for our britches," Manfred Duschl says today. "It wasn't just a matter of money," he explains. "The new owner needed to become a permanent partner and save as many jobs as possible."

Thomas le Paul, Dream Candidate

The management of the Simba Dickie Group wanted a French managing director. The immediate dream candidate: Thomas le Paul. He was head of Simba Toys Italy in Milan, and had even worked for Berchet earlier in his career. Manfred Duschl visited him. "I was absolutely shocked," says Thomas le Paul. "I felt honored, but thought that it was maybe a bit too much for me to bite off," the 33-year old manager says in retrospect.

On March 7, 2008 the Simba Dickie Group got word that its Smoby acquisition had been approved, and two weeks later le Paul was installed at the Smoby headquarters in Lavans. Today he is surrounded by 150 employees. He's tackled the gigantic task with an all-out effort. In the beginning he had one of the three executive managers at his side, as well as support from experienced staff from the German and Spanish branches of the Simba Dickie Group.

Everything had to be redone from scratch, including winning back customers and markets and opening up new ones. It took an immense amount of effort, "but it was indescribably exciting," says Manfred Duschl. After all, everyone in the Fürth office believed in Smoby, on its unique plastic creations and the halo effect for all other brands within the corporate group and its European locations. "We were determined to get production and delivery in place for the Christmas season," Duschl explains.

The two-headed machine produces pairs of sand pails and water cans with a Nemo design.

Motivation is the magic word

The Fürth management team approached the problems with caution, but applied pressure as well. The internal mechanisms needed to be up and running flawlessly as soon as possible. The experience and know-how of the more than 450 remaining employees were still there. But the entire organization within the factories and logistics departments had to be reactivated. The atmosphere was tense, not least because the employees had lost faith in Smoby and "managers." "We had discussion after discussion trying to instill some confidence," le Paul says.

There were also foreign subsidiaries to take into consideration. The Smoby companies in Hong Kong, Italy and Spain were acquired, while in Germany and England new Smoby Toys companies were founded. The critical phase lasted six months, but finally operations recommenced. "It took a year, until spring, for the reward to come," says Thomas le Paul: "We not only hit our goal of 100 million in sales for the first year, we even slightly exceeded it."

Managing Director Thomas le Paul likes visiting the main showroom.

In Jura the Smoby sun is rising

Smoby is once again Europe's market leader in the area of unique outdoor products, such as giant slides and play houses, as well as mini-kitchens and workbenches for role play. Smoby quality and design are unlike anything else, and its wonderful, multifunctional play concepts are unparalleled. "It will still take a couple of years before the company is permanently profitable," Manfred Duschl says. Yet the synergy effect with other subsidiaries is already noticeable, including in logistics, distribution channels and product development. The French team is unmatched in these areas, as the first successful project shows – the Powerworker sand vehicle developed for BIG.

Tapping into the extraordinary know-how of the French designers for all group brands is indeed one of the key goals. "We've founded a 'center of competence' in France to serve all of our companies," says finance expert Manfred Duschl. Thanks to Smoby it's now possible to handle all aspects of product development at one site, from brainstorming to design and right through to production tool engineering and manufacture.

Thomas le Paul praises his team for its constant improvements. What remains ahead can be tackled as a team. Which leaves him time to focus on the primary mission: "Coming up with innovative ideas for toys." Because that's the only way to guarantee a successful future in Jura. And naturally there's also a private aspect to his Smoby world. "I like the Jura area, the team, and my work. But I hope I'll be able to find a bit more balance between my career and my private life." So that he can spend more time with his little daughter, playing with the wonderful Smoby toys.

The Smoby team on the terrace of the headquarters in Lavans- lès-Saint-Claude.