BREAKING NEWS: Omega International in public-to-private deal
YORKSHIRE-BASED kitchen manufacturer Omega International is to be taken private off the stock market by its management in a deal worth £31m.
The Doncaster-based group, which floated on AIM in 2004, is to be acquired by a team led by chairman Bob Murray, chief executive Francis Galvin and directors Newton Winfield and Peter Walker.
The deal sees the management paying 108p per Omega share, a premium of 71% to last night’s closing share price of 63p.
In addition to the cash offer, Omega shareholders will be entitled to an additional dividend of 2p per share for the year to December 31. Omega shareholders will also be paid the interim dividend of 0.94p for the six months to June 27.
The Omega management were advised by a team from law firm Pinsent Masons led by Leeds-based corporate partners Martin Shaw and Philip Goldsborough.
Darren Bryant head of the Yorkshire Corporate Finance team at PricewaterhouseCoopers advised management and the bidding vehicle, Omega Bidco, on the transaction.
Debt funding was provided by Lloyds TSB in Sheffield, led by Andrew Aisthorpe. Keith Froud from Eversheds in Leeds provided legal advice to the independent directors of the company.
Pictured in front of one of Omega’s new Charles Rennie Mackintosh range of kitchens: (l to r) Newton Winfield (operations director, Omega International), Martin Shaw (partner, Pinsent Masons), Bob Murray (chairman, Omega International), Peter Walker (director, Omega International), Philip Goldsborough (partner, Pinsent Masons), Francis Galvin (chief executive, Omega International) and Darren Bryant (partner, PwC Corporate Finance).
Omega International Group designs, manufactures and sells quality kitchen furniture under the Sheraton, Omega and Chippendale brands to independent retailers across the UK. It recently launched the new Charles Rennie Mackintosh range aimed at the upper end of the market.
It was founded in 1996 by a team led by former Sunderland football club chairman Bob Murray, the co-founder of Yorkshire-based kitchens and bathrooms manufacturer Spring RAM.
The Pinsent Masons team advising the Omega management team and the bidder, Omega Bidco included by Shiv Sibal and John Clegg and Philip Scott.
Bob Murray, chairman of Omega said: “I am delighted that, with the advice of Pinsent Masons and PwC Corporate Finance, we have been able to secure the necessary funding to be able to offer all shareholders a fair and attractive price to acquire the company.
“Whilst the economic environment is undoubtedly challenging, the fundamental strengths of the Omega business remain unchanged. The management team remains confident in the company’s long term strategy for growth and in the prospects for the group going forward.”
Martin Shaw, head of corporate, Europe, at Pinsent Masons, said: “It has been a privilege to have advised Omega and its management team through the development of the business, its AIM flotation in 2004 and now the longer term planning for the future. The current market conditions have presented additional hurdles but I am delighted that the quality of the management team has been recognised.”
Mr Bryant, partner and head of PwC’s Yorkshire Corporate Finance team, said: “Given the well publicised turmoil in the debt markets, few leveraged transactions are currently being completed, especially in the discretionary spend, consumer sector in which Omega operates.
“It is testament to the strength of the business and its management team that we have been able to successfully raise a competitively priced senior debt package to fund the deal. I am delighted to have advised Bob and the team on this transaction.”
Andrew Aisthorpe, relationship director at Lloyds TSB Corporate Markets in Sheffield, said: “Omega is a longstanding client of Lloyds TSB Corporate Markets and in the current volatile financial markets we are very pleased to have been able to again demonstrate our ability to deliver by backing a proven local business with a very capable management team.”
