Fila announced the acquisition of the entire share capital of Renoir TopCo Ltd, the holding company of the Daler-Rowney Lukas Group, from funds under the management of Electra Partners LLP and from the management team of Daler for a total payment of 80.8 million euros. The Daler-Rowney Group has been producing and distributing since 1783 materials and accessories for the Art & Craft industry and in 2015 reached 60 million pounds in revenues (download here the press release).
The acquisition of the entire share capital of Renoir TopCo Ltd involves 2.6 million as payment for the ordinary shares, 12.7 millions as payment for the preference shares and 65.5 millions for the redemption of the loan notes held by the sellers.
Fila, which is a colouring, drawing, modelling, writing and painting tools leader listed at the Milan Stock Exchange, financed the deal through a medium-term bank loan issued by Unicredit, Intesa Sanpaolo and Mediobanca for a total amount of 130 million euros, which includes also a revolving facility to manage FIlas’s working capital needs.
Electra gained 32 million pounds proceeds from the sale or 1.6x the invested capital as the fund acquired the stake in the company in 2011 investing 17 million pounds and invested 3 millions more in 2014. On September 30 2015 the stake in Daler-Rowney Lukas was valued just 12 million pounds on the company’s books (download here the press release).
Fila was supported by Leonardo & Co as sole financial advisor, Salonia Associati and Skadden, Arps, Slate, Meagher & Flom, as legal advisors.