Strix Group Plc has agreed to sell its Billi business to a new Australian entity for £110 million in cash, nearly tripling its money as the firm looks to accelerate debt reduction.
The AIM-listed technology company, which is a global leader in kettle safety controls and water-heating components, said the disposal values Billi at an enterprise value of £110m on a cash-free, debt-free basis, subject to shareholder approval.
The deal represents an approximate 3x return on the company’s original £38m investment when it acquired Billi in November 2022 and equates to around 47.8p per Strix share, a premium of about 18% to the recent share price.
Billi is a premium provider of instant boiling, chilled and sparkling filtered water systems and has continued to perform strongly under Isle of Man-headquartered Strix’s ownership, delivering double-digit growth at constant exchange rates.
For 2025, the business is expected to generate revenues of around £47m and adjusted EBITDA of approximately £10m.
Strix said it has significantly enhanced the business over the past three years, including expanding production capacity in Australia, opening a flagship showroom in London, strengthening the management team, rebuilding service capabilities and accelerating international expansion, particularly in the UK and Europe.
The buyer, Birmingham Bidco Pty Ltd, is a newly incorporated Australian entity backed by Crescent Capital Partners VII, a private equity fund managed by Sydney-based Crescent Capital Partners.
Strix said the disposal comes against the backdrop of macroeconomic and geopolitical headwinds that have impacted parts of the group, particularly its Controls division, contributing to weaker-than-expected trading and increased leverage.
The company has already taken steps to improve working capital efficiency, reduce inventory and control costs, including cancelling its final FY24 dividend.
The board believes the sale of Billi is the most effective way to return the group to a net cash position, reduce financial risk and eliminate reliance on debt funding.
Net proceeds of around £107m are expected after transaction costs, which it plans to use the majority of to repay its existing debt facility in full, while retaining a smaller, more appropriate facility going forward.
Following the disposal, the company will refocus on its core operations across heating, safety and filtration technologies, while continuing to invest in intellectual property, innovation and value-added services.
“The disposal of Billi represents a transformational milestone for Strix and a clear demonstration of our disciplined approach to capital allocation and value creation,” said Mark Bartlett, CEO of Strix.
“Over the three years that Billi has been part of the group, we have successfully enhanced its operational performance and strategic positioning, delivering an absolute return of c.3x on the original investment made in 2022.
“The proceeds from the disposal will significantly strengthen Strix’s balance sheet, enabling the company to eliminate its net debt and materially improve financial flexibility.
“This represents a pivotal step in reinforcing the long-term resilience and financial health of the group, allowing us to invest with confidence in our core business and support future growth initiatives.
Looking ahead, our focus remains firmly on sustaining our market-leading position across heating, safety and filtration technologies, while continuing to deliver the highest standards of service to our customers. Above all, Strix remains focused on creating sustainable, long-term value for shareholders, which sits at the very heart of our strategy.”
“The group has also agreed a memorandum of understanding with Billi to explore a future manufacturing and development partnership, which could allow Strix to continue benefiting from Billi’s growth under new ownership.”