European Capital sells Farrow & Ball for £275m

European Capital received equity proceeds of £236m, realising a gain of £138m and compounded annual rate of return of 23% from the sale. The investor had already received full repayment of the senior and mezzanine debt it had provided the company.

Under European Capital's stewardship, the company saw its turnover and EBITDA triple.

Previous funding
In 2006, European Capital bought a 72% stake in the company via an equity and debt injection. The GP provided £86m's worth of senior term loans, senior subordinated debt, loan notes and equity to support the buyout.

The auction process was managed by PwC.

Company
Founded in 1946 and based in Wimborne, Farrow & Ball is a paint and wallpaper company. The business has a presence in the UK, the US, France and Germany, and sells its products in 50 countries.

People
Giles Cheek is managing director and head of buyouts at European Capital; Benjamin Suquet is a director at the firm.

Advisers
Vendor – DLA Piper, Tim Wright, Ed Griffiths, John Pryor (Legal); Rothschild (Corporate finance).
Equity – Latham & Watkins, David Walker (Legal).
Management – Macfarlanes, Ian Martin (Legal); Jamieson Corporate Finance, Tom Burton (Corporate finance).

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• Topics
• UK / Ireland
• Consumer
• Exits
• Buyouts
• United Kingdom
• European Capital