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Ares may strip off Farrow & Ball: Bloomberg
Posted on Friday, 23 October 2020 12:02
Ares Management, the owner of UK paint manufacturer Farrow & Ball, is weighing up a sale of the business, people close to the situation told Bloomberg.
According to the sources, who asked to remain anonymous as the matter is confidential, Ares has been in discussions with potential advisors regarding strategic options for the paint company.
Farrow & Ball’s owner is timing a possible divestment in the hopes of attracting global coatings businesses, which are looking for smaller deals to help expand their product range, Bloomberg noted.
However, the people cautioned discussions are in the early stages and no final decision has been made.
Established in 1946, Farrow & Ball manufactures a range of paints and wallpapers.
Its paint shades include the likes of Dead Salmon and Elephant’s Breath, which can be found on the walls of the Museum of Modern Art in New York, among other buildings worldwide.
During the financial year ended 29th March 2020, Farrow & Ball posted turnover of GBP 76.57 million, up 3.6 per cent from GBP 73.92 million in the preceding 12 months.
Within the same timeframe, the group generated gross profit of GBP 54.26 million (FY 2019: GBP 52.10 million).
The potential sale of Farrow & Ball comes during a popular time for coatings and decorating companies, as people focus on home improvements and refurbishments during the ongoing coronavirus pandemic.
Earlier this week, Akzo Nobel agreed to buy paint manufacturer Industrias Titan for EUR 130.00 million.
Ares and Farrow & Ball either declined or were not immediately available for comment when approached by Bloomberg.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 109 deals targeting paint and coating manufacturers announced worldwide in 2020 to date.
Nippon Paint agreed to acquire stakes in several companies, including Nippon Paint (Thailand) and Nippon Paint (Singapore), from Wuthelam Holdings for JPY 1,049 billion (USD 9.93 billion) in the most valuable of these.
© Zephus Ltd