Electra invests £26million in Daler-Rowney

POSTED 30 March 2011

Electra Partners announces today that it has invested £26 million in a buyout of fine art materials supplier Daler-Rowney.

Based in Bracknell, Berkshire, Daler-Rowney is one of the largest suppliers of fine arts materials in the world. The company has a long record of product innovation (its history dates to 1783) and its product range today includes artists' paints, brushes, canvases, papers and accessories which meet the needs of beginner, amateur, student and professional artists. The company manufactures its products in the UK and the Dominican Republic and exports to over 90 countries worldwide. 

The management team is headed by industry veteran Patrick Giraud, who previously had a successful twenty-year career at Arjo Wiggins. Patrick bought Daler-Rowney from the Daler family in 2005 and since then has led its transformation into the strong, profitable business it is today. Patrick and his team will continue to run the business as before and will reinvest a significant proportion of their proceeds from the deal.

The fine arts materials market is a niche market with high barriers to entry around products, brands and supply chain complexity. Daler-Rowney owns a number of strong heritage brands which command high levels of consumer loyalty. 

Alex Cooper-Evans, an Investment Partner at Electra Partners said: "Daler-Rowney is a leading player in a niche market led by an entrepreneurial and passionate management team. We look forward to working with them as they continue to develop new products, customers and markets. The business has a bright future and we will be looking to help create value through an industry roll-up."

Patrick Giraud, Chairman and CEO of Daler-Rowney said: "We are delighted to be working with Electra Partners and very excited by the next phase of the Daler-Rowney story. We will keep on working hard to build on what we have achieved over the past six years."

This is the second transaction completed by Electra Partners this month following the acquisition of Sentinel Performance Solutions for £43 million.

Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.


Ends


For further information please contact:
Kate Ruck Keene, M:Communications +44 (0)20 7920 2322
Monique Dumas, Investor Relations Partner, Electra Partners +44 (0)20 7306 3911


Note to Editors:

About Daler-Rowney 
The company's history dates back to 1783 when the Rowney Company was established to sell perfumes and wig powder; today the company's extensive brand portfolio includes Langton and Aquafine watercolour papers; Cryla, the first acrylic artists' paint produced in Europe which was used by Peter Blake and Bridget Riley; Dalon, the first artists' brush to be made with synthetic hair; and most recently the "Simply" range which offers new artists a high-quality product at an attractive price point.
The company was family-owned until 2005 when current Chief Executive, Patrick Giraud, led a buy-in backed by a number of high net worth individuals.

For further information please visit www.daler-rowney.com.


About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years experience in the mid-market buyout sector. As at 30 September 2010, the firm had funds under management of over £800 million and investment capacity of £400 million on behalf of Electra Private Equity PLC and other clients. The firm's flexible investment approach allows it to invest across a broad range of sectors and financial instruments including equity, senior equity, convertibles and mezzanine debt. Concentrating principally on Western Europe, and with the majority of investments expected to be made in the United Kingdom, Electra Partners seeks to invest in the region of £20-75million per transaction. 

For further information please visit: www.electrapartners.com and www.electraequity.com

Electra Partners LLP is authorised and regulated by the FSA.