Quadrant acquires Australia's Darrell Lea

Financial details of the transaction have not been disclosed, but reports in Australian media have put the valuation at around A$200 million ($160 million). Quadrant said current owners Tony and Christina Quinn will retain a stake in the business and existing management will remain in place.

Founded in 1927, Darrell Lea manufactures a range of chocolate and licorice products that are sold in Australia, New Zealand, the US, Canada, and the UK. The company employs over 200 people at two manufacturing sites and sells more than 14,000 metric tons of confectionaries every year.

The Quinns bought Darrell Lea in 2012 after the company entered voluntary administration, laying off several hundred workers and closing its 69 Australian retail stores. The idea of selling to Quadrant occurred in 2015 when the GP acquired VIP Petfoods, which the Quinns founded in 1994. Quadrant exited VIP, now named Real Pet Foods, to a consortium of Asian investors last year.

"Darrell Lea is one of the most iconic consumer brands in Australia with a proud heritage of producing high-quality confectionary for over 90 years," said Chris Hadley, executive chairman of Quadrant. "We are excited to be investing in the business and believe there are significant opportunities to implement growth and strategic initiatives to enhance the brand and product in Australia and throughout the world."

Quadrant is investing its latest mid-market Australia and New Zealand fund, which closed last month at A$1.15 billion. The firm targets companies with enterprise values of A$100-500 million, committing A$70-150 million per investment.

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• Topics
• Australasia
• Consumer
• Buyouts
• Australia
• Quadrant Private Equity