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Paladone: Producing global expansion

Growth funding partnership helps drive digital and international growth for gifting business.

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Sector
  • Retail & consumer

Paladone is the UK’s market-leading designer, innovator and supplier of gifting products.

Deal type
  • Development capital
Investment

£13m

Brighton-based Paladone specialises in the design, development and wholesale supply of licensed and own-brand gifting products. The company has developed strategic licensed partnerships with major global brands including Walt Disney, Warner Brothers and Nintendo.

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

International investment

The management team sought a capital investment to support its major growth plan, and we backed the team with a £13m investment in April 2018. They chose LDC because of the understanding we had of its long-term ambitions, as well as the team’s strategic expertise.

The investment will fuel Paladone’s global expansion effort, 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.

Paladone 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.

The knowledgeable LDC team were excellent in helping us identify how we could drive a significant increase in our web sales. We’ve completely revitalised one of our sales channels.”
Yann Le Bouedec, Commercial Director
Paladone

Designing value

LDC’s involvement has also seen the management team work with LDC’s Value Creation Partners (VCP) team. VCP worked with Paladone’s senior team and its marketing function to improve sales by implementing more effective web design.

Following a period of testing, Paladone switched to the new website design. This resulted in a 150 per cent increase in web sales from the previous year. The new website also received higher levels of engagement, a 40 per cent increase on conversion and average order value increase of 33 per cent.

Overseas sales increase

In 2019, Paladone featured in the Sunday Times International Track 200, which recognises Britain’s mid-market private companies with the fastest-growing overseas sales. Paladone had grown sales by over 53 per cent and ranked 120th in the list, with the company eclipsing £20m in international sales in 2018.

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.”
Graeme Carr, Managing Director
Paladone