Strix Group PLC (AIM:KETL), a manufacturer and supplier of water temperature management components, said it has entered into a conditional agreement to buy Billi for £38mln.
According to a statement, it will be acquiring the Australian, British and New Zealand businesses of the boiling tap water company.
Strix announced in a separate statement that it will turn to the market to raise roughly £10mln by way of an accelerated bookbuild to “prepay certain debt facilities” associated with the purchase.
It will issue 8,695,652 new shares to new and existing shareholders at a price of 115p per share, which represents a 10% discount to the closing price on 4 October.
Billi is expected to generate revenues of approximately £43mln by the end of this year, said Strix, with the acquisition “accelerating the trajectory of and is accretive to Strix’s medium-term targets”, now expected to be achieved ahead of the 2025 timeframe.
"We are delighted to enter this agreement to acquire Billi, a leading multifunctional taps manufacturer and distributor. Billi accelerates our strategy within our Water and Appliances categories which is core to Strix's five-year plan,” said chief executive of Strix, Mark Bartlett.