Corporate News

LDC wraps up £13m investment in gifting specialist Paladone

Paladone, the UK’s market-leading designer, innovator and supplier of gifting products, has secured a £13m minority investment from mid-market private equity investor LDC, to accelerate its international growth.

Headquartered in Brighton, Paladone specialises in the design, development and wholesale supply of licensed and own brand gifting products. Paladone has established strategic license partnerships with leading global brands including Walt Disney, Warner Brothers, Star Wars and Nintendo. Its own-label brands such as Purple Donkey and Scott & Lawson currently account for 30 per cent of revenue.

With a catalogue of more than 800 products, and offices in Los Angeles and Hong Kong, Paladone generated revenues of more than £30million in its latest financial year, with 60 per cent of its sales being international.

LDC’s investment will fuel the business’ global expansion, as it looks to continue its strong growth in the US market, following demand for its products from large retail giants Kohl’s and Target. It is also eyeing growth opportunities in Australia, Asia and Europe, as well as investing in its online ecosystem to help increase revenues generated from its website.

Paladone will continue to be led by Managing Director Graeme Carr and Commercial Director Yann Le Bouedec, supported by Finance Director Steve Fleming. As part of the deal, private equity veteran James Barbour-Smith joins as Non-Executive Chairman. The deal was led for LDC by Christian Bruning, Rob Apollo and Aylesh Patel with Patel and Bruning joining the Paladone board as Non-Executive Directors.

Graeme Carr, Managing Director of Paladone, said: “We started out as a small novelty gift company almost 25 years’ ago, and the commitment and hard work of our team has helped us grow to become an international firm, holding longstanding relationships with some of the world’s best-known brands. Over the years we have significantly invested in the quality and design of our products, which is why we’re now in a market leading position.

For us, the time is right to bring an investment partner on board. In LDC we have found a team who understands our long-term ambitions and can provide us with the strategic expertise to help take the business to the next level.”

Aylesh Patel at LDC, said: “Paladone’s reputation both in the home market and overseas has seen the business go from strength-to-strength. Partnering with us will give Graeme, Yann and the team additional funding and support to elevate the business’ position on the international stage, explore opportunities to grow both organically and through a buy and build strategy, and enhance the business’ online platform, making it more visible and accessible to customers worldwide.”

Banking facilities were provided by PNC.

LDC was advised by RSM, CIL, BDO and Shoosmiths.

Paladone was advised by Spectrum Corporate Finance and Rosenblatt.

View Paladone in our portfolio

Article Footnotes

Notes to Editors

  1. LDC is part of the Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority
  2. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Construction & Property, Financial Services, Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure and Support Services.
  4. LDC has a UK regional network of 9 offices.