02/11/2010

Darwin Private Equity Backs Management Buyout of Euroffice Limited

 

Darwin Private Equity (“Darwin”) has completed its third investment of 2010, with the acquisition of a majority stake in Euroffice Ltd (“Euroffice”).

Euroffice is the UK’s leading online office supplies company serving the SME market.  With an internet-only business model, Euroffice is able to supply a range of over 27,000 products at highly competitive prices with next day delivery.

The SME office supplies market is estimated to be more than £1 billion in the UK and the on-line channel is growing significantly faster than the wider market.  In 2009 Euroffice began its international expansion with a successful launch into the Italian market.  The company now employs 49 people in London and Milan.

Darwin is backing the existing management team, led by CEO Simon Drakeford.  Euroffice’s Founder George Karibian will remain with the business as Non-Executive Chairman.

Commenting on the sale, George Karibian said:  “Euroffice has succeeded in achieving significant scale and sustained growth in a market that has suffered during the recession.  Our partnership with Darwin will enable us to accelerate our growth plans by investing in the people and technology needed to ensure we continue to offer the best quality customer experience and product range.  There is no one else serving the SME office supplies market online in such a focused and committed way as Euroffice.”

Derek Elliott, partner of Darwin Private Equity, commented:  “Euroffice is a high growth business with an excellent management team and a proven online model.  This has enabled it to gain substantial share of channel within the SME market.  The business has very high customer satisfaction levels and we are excited to be backing its next phase of growth.”

“We are delighted to have seeded Euroffice back in 2000 and supported the company over the past 10 years enabling it to become the sizeable, profitable and successful business it is today and we wish the management team the best for the future,” commented Venture Capitalist Diana Saraceni, General Partner of 360 Capital Partners.

 
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