Strix Group PLC (AIM:KETL) shares bubbled 16% higher after it agreed to sell the Billi water dispenser business for £110 million in cash, subject to shareholder approval.
The transaction represents a near threefold return on the £38 million Strix paid in 2022 for Billi, which produces premium instant boiling, chilled, and sparkling water systems.
Billi is expected to generate £47 million in revenue and £10 million in adjusted EBITDA in 2025.
Under Strix’s ownership, the business expanded operations in the UK and Australia and launched new customer initiatives.
The company said the disposal will accelerate efforts to reduce net debt, which is forecast at around £68 million at completion. Strix plans to repay its existing debt in full and intends to launch a £10 million share buyback. Additional capital returns are under review.
“The board believes that the disposal represents the optimal path to bring the Group back into a net cash position and remove reliance on debt funding,” Strix said.
The group also announced a memorandum of understanding to provide engineering and R&D support to Billi post-sale.
A shareholder meeting to approve the deal will be held on 8 January 2026. A circular with further details will be issued shortly.
CEO Mark Bartlett said the disposal "represents a transformational milestone" for Strix and strengthening the balance sheet "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, he said Strix would be focused on sustaining its market-leading position in heating, safety and filtration technologies.
Shares in Strix climbed to 47.2p by mid-morning, up from their recent all-time low below 33p in early November.
** UPDATE: Adds share price **