Ares Management acquires Farrow & Ball

Ares Management has bought Farrow & Ball, a UK-based maker of paint and wallpaper. The seller was European Capital Limited, an American Capital affiliate. No financial terms were disclosed.

PRESS RELEASE

LOS ANGELES & LONDON–(BUSINESS WIRE)–Ares Management, L.P. (NYSE:ARES) announced today that a fund managed by its Private Equity Group has acquired Farrow & Ball, a global leader in high quality paint and wallpaper, from European Capital Limited, a wholly-owned investment affiliate of American Capital, Ltd (NASDAQ:ACAS). Farrow & Ball’s senior management will retain a minority stake.

Farrow & Ball, based in Dorset, England, manufactures and sells premium paints and wallpaper, which are renowned for their sumptuous colours, richness of pigmentation and traditional craftsmanship. Founded in 1946, Farrow & Ball now has a network of more than 50 showrooms throughout Europe and North America and approximately 1,200 independent stockists across the globe.

“We are excited to partner with the Farrow & Ball management team as long-term investors in the company given its powerful brand and strong growth potential,” said Charles Steel, Partner in the Private Equity Group of Ares Management.

“This investment exemplifies our strategy of partnering with best-in-class management teams that have distinguished products and leadership positions in their industry,” said David Kaplan, Co-Founder, Senior Partner, and Co-Head of the Private Equity Group of Ares Management. “We look forward to supporting the next phase of the company’s growth in the U.K., U.S. and other international markets.”

“We thank European Capital for its support over the past eight years in our successful partnership,” said Don Henshall, Chief Executive of Farrow & Ball. “And we are delighted to partner with the Ares Management team going forward as we share their vision for accelerating the growth of the business.”

This is the second investment made by the Ares Management Private Equity Group in Europe this year, following the acquisition of homebuilder London Square in July 2014.

About Ares
Ares Management, L.P. (NYSE:ARES) is a leading global alternative asset manager with approximately $80 billion of assets under management and approximately 730 employees in more than 15 offices in the United States, Europe and Asia as of September 30, 2014. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its four distinct but complementary investment groups in Tradable Credit, Direct Lending, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.
The Ares Private Equity Group manages approximately $10 billion of assets and is currently actively investing its fourth private equity fund, ACOF IV, which has $4.7 billion of committed capital. The Ares Private Equity Group pursues majority or shared-control investments, principally in middle market companies with strong business franchises and in situations where its capital can serve as a catalyst for growth. Ares Management’s Private Equity senior partners average more than 20 years of experience investing in, controlling, advising, and restructuring companies.

Visit www.aresmgmt.com for more information.

Forward Looking Statement:
Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares’ filings with the Securities and Exchange Commission. Ares’ undertakes no duty to update any forward-looking statements made herein.

About Farrow & Ball
Founded by two chemists, John Farrow and Richard Ball, in 1946, Farrow & Ball manufactures luxury decorative paint and wallpaper that transforms homes around the world. Farrow & Ball products are manufactured using age-old manufacturing techniques that result in unmatched product quality and attention to detail. Farrow & Ball paint is distinguished for its depth of color and unique finish through the use of high levels of pigments, rich resin binders, and ingredients with a high refractory nature. Additionally, its complementary wallpaper products are handcrafted using Farrow & Ball paint with traditional block and trough printing methods, creating a distinctive tactile texture. All of Farrow & Ball products are manufactured by craftsmen at its factory in Dorset, England, home to the company since inception. Farrow & Ball products are available from company showrooms and stockists around the world and www.farrow-ball.com.