Franchise Brands said it has conditionally raised £92mln before expenses to fund its takeover of Pirtek Europe owner Hydraulic Authority I Limited (HAI).
Following the initial announcement of the deal late on Monday, the multi-brand franchise business said on Tuesday that just over 51mln shares have been conditionally placed at 180p per share, raising £91.8mln
As a result, total equity of £114.3mln will be issued pursuant to the takeover, according to a statement, split between placing shares, consideration shares, and subscription shares which will be given to senior management and employees of Pirtek.
"We are pleased to have successfully completed the bookbuild for the fundraise with the support of both new and existing institutional investors,” said executive chairman of Franchise Brands Stephen Hemsley.
“This will enable us to proceed with the transformational acquisition of Pirtek Europe, a high-quality provider of mission-critical, emergency response on-site hydraulic hose replacement and associated services.”
The AIM-listed company announced yesterday it would be acquiring HAI in a deal worth over £200mln.
Franchise also has a £55mln loan term and £55mln revolving facility which will help fund the deal.