F.I.L.A. advances its international global growth strategy with the full acquisition of the historic British group Daler-Rowney Lukas - worldwide leader in the arts & crafts market. Now with With around 5000 employees, 11 manufacturing sites and sales in over 50 different countries.
The acquisition wil further strengthens the compnay's presence in this sector with an equity value of 81 millions euros. The Daler-Rowney Group has been producing and distributing since 1783 materials and accessories for the art & craft industry. With a direct presence in the UK, the Dominican Republic (production), Germany and the USA (distribution), Daler appeals to a wide consumer base and presents a perfectly complementary range of products to those of FILA.
In the USA, Daler has been the principal supplier of art materials to Walmart since 2009. The acquisition of the entire share capital of Renoir TopCo Ltd involves a total payment of Euro 80.8 million, of which Euro 2.6 million as payment for the 'ordinary shares, 12.7 million euros as payment for the 'preference shares' and 65.5 million euros for the redemption of the Loan Notes held by the sellers.
The acquisition of the Daler-Rowney Lukas Group represents a further significant step in the strengthening of FILA's presence in this sector, which features major distribution and commercial synergies with the colour market, and confirms FILA's growth strategy through acquisitions. The integration with the Daler-Rowney Lukas Group aims at achieving significant cost synergies - through the optimisation of the production structure, sales force and overhead costs – as well as revenue synergies – through the increase of Daler-Rowney products sales.
The transaction has been financed through a medium-term bank loan issued by Unicredit S.p.A., Intesa Sanpaolo S.p.A. and Mediobanca Banca di Credito Finanziario S.p.A.for a total amount of Euro 130 million, which includes also a revolving facility to manage FILA's working capital needs. The terms and conditions of the transaction have been agreed between the parties today through the signing of (i) the Share Purchase Agreement and (ii) the Warranty Deed, a document containing the usual guarantees for similar transactions closed by the top management of Daler-Rowney.
Posted: 24 February 2016
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