Ultralase to expand despite restructure
YORKSHIRE-BASED laser eye surgery group is pushing ahead with its expansion plans despite a financial restructuring which has seen its banks take a majority stake in the business.
The Leeds group, which was bought two years ago by private equity firm 3i for £174m, said the move would not affect trading.
The restructuring has seen Ultralase put one of its holding companies, Ultralase Finance, into administration and sold it the same day to a new company called CLVC Group which is backed by the private equity arms of its lenders, Barclays, Royal Bank of Scotland, Lloyd Banking Group and Bank of Ireland.
In a memo to staff, chief executive Tony Verveka said the move had been prompted by 3i using “relatively high levels of debt in order to fund the acquisition”.
He added: “The financial structur of the holding companies put in place as part of the 3i deal has made it difficult to keep investing in the business, prompting the board to complete a review of restructuring options.
“The result of the review is the formation of CLVC Group with significantly reduced debt.
Mr Verveka went on to say that the corporate restructure was “positive news for customers and colleagues” and it provides a “stronger foundation for the group to navigate some challenging market conditions while pursuing the strategy of improving operational practices, launching new products and entering new markets in order to fuel the continued growth of the business.”
The company, which has 32 clinics across the UK and Ireland and is looking at European expansion, is thought to have achieved sales of around £50m last year.
