Strix Group (LSE:KETL) has reached an agreement to sell its Billi business to Birmingham Bidco Pty Ltd, a vehicle backed by Crescent Capital Partners, for £110 million on a cash-free, debt-free basis. Billi, which supplies premium instant boiling, chilled and sparkling filtered water systems, was acquired by Strix in 2022. The agreed price represents an approximate threefold return on the original investment and an 18% premium to Strix’s prevailing share price.
The transaction, which is subject to shareholder approval, is expected to materially strengthen the group’s balance sheet. Strix said net proceeds of around £107 million will be used to repay its existing debt facilities, moving the company into a net cash position and improving financial flexibility after a period of macroeconomic headwinds and currency pressures.
While Billi has delivered double-digit growth under Strix’s ownership and benefited from expanded capacity, distribution and management capability, the board said the business would require further investment that Strix is less well positioned to provide. As a result, it has opted to crystallise value at this stage, while also securing an ongoing manufacturing and development partnership with Billi under its new ownership.
Following completion, Strix plans to concentrate capital and management attention on its core Controls and Consumer Goods divisions. Strategic priorities include broadening the addressable market for controls and filtration technologies beyond kettles, accelerating the rollout of new heating and safety innovations, tightening cost discipline, defending market share—particularly in the US—through action against copycat products, and working toward the restoration of dividend capacity over time.
From an investment standpoint, Strix continues to face profitability and revenue growth challenges, reflected in weak valuation metrics and bearish technical indicators. Although the shares appear oversold and cash generation provides some underpinning, sustained improvement in earnings will be required to materially enhance the group’s financial profile.
More about Strix Group
Strix Group Plc is an AIM-listed global specialist in kettle safety controls and related components for water heating, temperature control, steam management and filtration. The group supplies both OEM and consumer markets through its Controls and Consumer Goods divisions and leverages proprietary intellectual property, established manufacturing capabilities and strong customer relationships, including its LAICA-branded consumer products, to maintain a leading position in small domestic appliances and water technology markets.
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