Denmark’s Hempel buys £500m paint firm Farrow & Ball

Copenhagen-based coatings manufacturer Hempel announced it agreed to acquire Dorset, England-based luxury paint and wallpaper company Farrow & Ball from the Los Angeles-based private equity group of Ares Management Corporation.

Analysts said the deal is worth roughly £500 millio. Ares paid around £275 million for Farrow & Ball in 2014.

Farrow & Ball has an annual turnover of over €100 million.

The transaction is subject to customary regulatory approval and is expected to close in the second half of 2021.

“Farrow & Ball is an iconic, luxury, decorative paint and wallpaper company,” said Hempel Group President & CEO Lars Petersson.

“It is used by consumers, designers and cultural institutions around the world – all who have a passion for rich colours in an eco-friendly paint.

“I am very proud to welcome our new colleagues to the Hempel fam-ily. Together we will ensure that Farrow & Ball continues its strong growth journey.

“Hempel is taking the next, large step to double its revenue to EUR 3 billion by 2025.

“The acquisition is a good strategic match, supporting Hempel’s growth ambitions within the decorative seg-ment.

“I am proud that we have already taken the next step on our journey to double our business.

“The addition of Farrow & Ball to our branded portfolio is another proof point that we are going for leadership positions in key segments and geographies.”

Farrow & Ball CEO Anthony Davey said: “We are looking forward to taking our growth journey to the next level as part of the Hempel Group with whom we share strong sustainability principles.

“As part of the Hempel Group, we have an exciting opportunity to extend our brand in new markets through a strong global distribution network and longstanding trade relationships.”

Ares Private Equity Group partner David Ricanati said: “Since acquiring Farrow & Ball in 2014, we are proud to have partnered with the company during a period of significant value creation.

“We are delighted that they found the right partner in Hempel to support the company in the years ahead.”

Moelis & Company LLC and Rothschild & Co. served as financial advisors to Farrow & Ball. Latham & Watkins (London) LLP served as legal advisor to Farrow & Ball and Ares.