Strix to Sell Billi Business for £110m to Cut Debt and Refocus on Core Operations

The latest update is out from Strix Group ( (GB:KETL) ).

Strix Group has agreed to sell its Billi business, a premium provider of instant boiling, chilled and sparkling filtered water systems acquired in 2022, to Crescent Capital Partners-backed Birmingham Bidco Pty Ltd for £110 million on a cash-free, debt-free basis, representing roughly a threefold return on the original purchase price and an 18% premium to its current share price. The disposal, which requires shareholder approval, is aimed at rapidly strengthening Strix’s balance sheet by using estimated net proceeds of about £107 million to repay its existing debt facility and move the group into a net cash position, freeing capital to reinvest in its core Controls and Consumer Goods operations after a period of macroeconomic and currency-driven pressure on trading and leverage. While Billi has been delivering double-digit growth and has expanded capacity, distribution and management under Strix’s ownership, the board believes the business now requires further investment that Strix would be slower to provide, and has concluded that crystallising value now and securing an ongoing manufacturing and development partnership with Billi under new ownership offers better risk-adjusted returns for shareholders. Post-transaction, Strix plans to focus on expanding its controls and filtration addressable markets beyond kettles, accelerating new heating and safety technologies, tightening costs and operations, defending market share—particularly in the US—through action against copyists, and ultimately restoring its dividend capacity as it redeploys capital into innovation and value-added services across its core franchises.

The most recent analyst rating on (GB:KETL) stock is a Buy with a £75.00 price target. To see the full list of analyst forecasts on Strix Group stock, see the GB:KETL Stock Forecast page.

Spark’s Take on GB:KETL Stock

According to Spark, TipRanks’ AI Analyst, GB:KETL is a Neutral.

The overall stock score of 46 reflects significant financial challenges, particularly in profitability and revenue growth, combined with bearish technical indicators and a negative P/E ratio. The stock is currently in a downtrend with oversold technical conditions, and the lack of a dividend yield further detracts from its valuation appeal. While cash flow generation offers some stability, the company needs to address its profitability issues to improve its financial health.

To see Spark’s full report on GB:KETL stock, click here.

More about Strix Group

Strix Group Plc, listed on AIM, is a global specialist in kettle safety controls and other components and devices for water heating, temperature control, steam management and water filtration, supplying OEMs and consumer markets through its Controls and Consumer Goods divisions. The group leverages strong OEM relationships, proprietary intellectual property and manufacturing capabilities, including its LAICA-branded consumer goods range, to maintain a leading position in the small domestic appliances and water-related technologies sector.

Average Trading Volume: 606,124

Technical Sentiment Signal: Sell

Current Market Cap: £94.27M

For an in-depth examination of KETL stock, go to TipRanks’ Overview page.