IVEST Consumer Partners acquires Britain’s Paladone

British private equity firm LDC has exited its investment in Paladone, a Brighton, UK-based wholesale gift supply company.

British private equity firm LDC has exited its investment in Paladone, a Brighton, UK-based wholesale gift supply company. No financial terms were disclosed. The buyer was Canadian private equity firm IVEST Consumer Partners.

PRESS RELEASE

Leading mid-market private equity firm LDC has exited its investment in lifestyle products company Paladone to Canadian private equity firm IVEST Consumer Partners.

Paladone specialises in the design, development and wholesale supply of own-brand and licensed products for brands including PlayStation, Disney and Harry Potter. It launches hundreds of new products a year across categories such as homeware, drinkware, puzzles and games, and supplies international retail giants such as Kohl’s, Target and Walgreens.
LDC backed the Brighton-headquartered business in 2018 to support the existing management team’s ambitious international and organic growth strategy.

The three-year partnership has helped Paladone to significantly grow revenues by more than 65 percent over 3 years. The business has also increased its total headcount by 40 percent and now employs 140 people across its offices in the UK, Los Angeles and Hong Kong.

Working closely with LDC, the management team successfully pursued international growth by agreeing major new partnerships with high street retail giants across North America, Europe and Australasia. The business has doubled international sales over the last three years. Today it exports to more than 80 countries worldwide.

During the partnership, Paladone invested in the development of new beauty and lifestyle products and introduced the use of BDPTM, a biodegradable plastic that decomposes naturally in landfill. Paladone’s management team worked with LDC’s Value Creation Partners to significantly increase the business’ digital presence through Amazon and other online digital marketplaces.

The business also signed new licence partnerships with major global brands, including PlayStation, Microsoft and Minecraft, and expanded its existing partnerships with Disney, Warner Brothers and Nintendo to bring its customers more products from the world’s leading franchises.

IVEST Consumer Partners will now support the next stage of Paladone’s international growth journey as it looks to further expand into the North American market and beyond.
Yann Le Bouedec, Commercial Director of Paladone, said: “The support we’ve received from LDC to accelerate our global growth plans has been invaluable. We’ve grown from a UK gifting product specialist into a global omnichannel consumer products company with an expanded portfolio of products and even deeper relationships with some of the world’s biggest brands.”

Christian Bruning, Director at LDC, added: “Paladone’s management team has capitalised on global demand, unlocked digital sales and transformed the business into an international market leader. We’re proud to have been part of their growth journey, and look forward to seeing the business continue to go from strength to strength across the world.”
Paladone was advised by Lincoln International, DLA Piper, Spectrum Corporate Finance, RSM and CIL.