Kettle controls maker on the boil with £190m float

Kettle safety controls manufacturer and supplier Strix Group has completed its £190m equity fundraising and listing on the Alternative Investment Market.

Established in 1982, Isle of Man-based Strix designs, manufactures and supplies kettle safety controls and other water temperature management components. The company sold 174 million kettles worldwide in 2016 – a 38% global market share.

Strix’s latest financial results show a turnover of £88.7m in 2016, up from £79.9m the year before. The business employs more than 750 staff across its six sites in Chester, the Isle of Man, Hong Kong and China, as well as regional sales managers based across the globe.

The placing will be used to provides a full exit for the existing investor group, led by AAC Capital Partners. As a result, almost 100% of the company’s shares have been offered to institutional investors through the transaction.

The initial public offering will also enable the business to strengthen and invest in its new product development capabilities, and incentivise its management team and wider employee base, it said.

Mark Bartlett, chief executive of Strix Group Plc, said: “Admission to AIM will provide an appropriate structure for the long-term development of the business, raise our international profile and enables us to invest in our new product development capabilities to the benefit of our valued customers.

“Strix has a robust, highly cash generative business model. We have a growing global market share and in addition to the key OEMs in China, we work with a significant number of the best known brands and retailers worldwide. We are delighted to have become a public company and further growth of our business in existing and new markets.”

A Manchester team at Zeus Capital, led by corporate finance directors Nick Cowles and Jamie Peel, acted as nominated adviser (NOMAD) and sole broker to Strix on the transaction.

Cowles said: “Through its intricate knowledge of precision engineering and material properties, Strix has built itself a sizable share of the market in recent years. This, coupled with its well-served and loyal customer base, puts the business in a strong position to take advantage of the investor appetite we have already seen.

“With the potential for further international expansion, as well as increased funding to innovate through its ongoing product developments, the business has enormous potential, and we wish Strix success as it begins its life as a public company.”

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