LONDON: Strix Group Plc, the AIM-listed maker of kettle safety controls, said on Friday it has agreed to sell its premium water systems business, Billi, for £110 million in cash, a move aimed at wiping out its net debt and returning capital to shareholders.
The conditional sale to Australian private equity firm Crescent Capital Partners via Birmingham Bidco Pty Ltd values Billi at nearly three times the £38 million Strix paid for it in November 2022.
The deal underscores a strategic shift for Strix, which has faced macroeconomic headwinds, including tariff impacts and a weaker U.S. dollar, pressuring its core Controls division and increasing leverage.
Strategic Rationale and Financial Impact
Strix said the proceeds, expected to be about £107 million after costs, will be used to fully repay its debt facility. The group’s net debt is projected to be around £68 million at the expected completion date of Jan. 30, 2026.
“The disposal of Billi represents a transformational milestone for Strix,” said Chief Executive Mark Bartlett. “The proceeds will significantly strengthen Strix’s balance sheet, enabling the Company to eliminate its net debt and materially improve financial flexibility.”
Following the repayment, Strix plans to launch a £10 million share buyback programme and return further capital to shareholders, with details to be announced with its full-year 2026 results. Some proceeds will be retained for strategic growth initiatives and working capital.
Billi’s Growth and Future Partnership
Billi, a provider of instant boiling, chilled, and sparkling water systems, has performed strongly under Strix’s ownership. For the 12 months ending Dec. 31, 2025, it is expected to generate revenue of about £47 million and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of about £10 million.
Strix said Billi requires further investment for its long-term growth, which the parent company could not provide quickly while prioritising debt reduction. The sale allows Strix to crystallise a significant return while entering a proposed manufacturing and development partnership with Billi under new ownership.
Board Recommendation and Shareholder Vote
The disposal, classified as a fundamental change of business under AIM rules, requires shareholder approval at a general meeting scheduled for Jan. 8, 2026.
The board, which has consulted with advisers Zeus Capital and Stifel Nicolaus Europe, unanimously recommends the deal. Directors and shareholders holding about 20.5% of the company’s shares have provided letters of intent to vote in favour.
Future Strategy
With a strengthened balance sheet, Strix said it will focus on its core heating, safety and filtration technologies. Its strategy includes expanding its controls market beyond kettles, accelerating new technology development, and defending market share against copyist products, particularly in the U.S.
The company said it aims to resume dividend payments in due course following the disposal’s completion.