Allen & Overy is advising Exponent Private Equity (Exponent) on its binding offer, together with Electra Partners, for Photobox Group, Europe’s leading digital consumer service for personalised products and gifts. Photobox Group is the parent of the PhotoBox, Moonpig, PaperShaker, Sticky9, Hofmann, Posterjack and posterXXL brands.

Under the terms of the offer, Exponent and Electra Private Equity PLC would be the principal shareholders, with Photobox Group management team reinvesting part of their proceeds. The offer is subject to certain conditions including consultation with employee representatives and anti-trust clearance.

Gordon Milne, corporate private equity partner at Allen & Overy, commented: “The level of interest from private equity houses in consumer sector assets is increasing at a significant pace and this is one of the key themes of the year. Data released by Deloitte this week shows that consumer confidence is climbing and in the third quarter reached its highest level in at least four years, as low inflation and increased wages prompted renewed interest in leisure expenditure. We expect that this confidence will translate into further transactions in the sector during the rest of the year, and well into the first quarter of 2016.”

Allen & Overy is also advising the proposed purchaser, a company backed by Exponent and Electra Partners, on the terms of the proposed acquisition, including the debt financing with JPMorgan and the equity arrangements with the management team and the investors.

The Allen & Overy team is being led by corporate private equity partner Gordon Milne with assistance from associates Chris Sabine, Tom Jokelson and Jon Fox. Corporate private equity partner Karan Dinamani is advising on the equity arrangements with assistance from senior associate Monika Przygoda. London banking partner David Lines is advising on the debt financing supported by senior associate Urs Lewens. Antitrust partner Alasdair Balfour is advising on merger control filings assisted by associate Camille Paulhac.

The transaction is the latest in the roster of significant private equity transactions on which Allen & Overy has advised in 2015, including advising:

* Exponent Private Equity on the GBP550m sale of Quorn Foods to Monde Nissin Corporation
* PAI Partners on the proposed EUR3bn joint venture between its portfolio company R&R Ice Cream and Nestlé
* OMERS Private Equity and AIMCo on their USD1.7bn acquisition of ERM from Charterhouse Capital Partners
* Lone Star Funds on their acquisitions of Balta Group from Doughty Hanson and their public-to-private of Quintain Estates and Development plc.
* Charterhouse Capital Partners on its sale of Deb Group to U.S household products company SC Johnson
* PAI Partners on its acquisitions of A/S Adventure and Snow & Rock