LONDON, UK: Stelrad Radiator Group, a leading specialist manufacturer and distributor of steel panel radiators, is considering an initial public offering (IPO) and intends to publish a registration document today.
Stelrad is considering applying for admission of the Ordinary Shares to the premium segment of the Official List of the FCA and to trading on the Main Market of the London Stock Exchange.
The offer would comprise both new Ordinary Shares raising gross proceeds of approximately £25 million to repay certain existing indebtedness of the Group and existing Ordinary Shares to be sold by existing Stelrad shareholders.
The Company expects to have a free float in excess of 25% of issued share capital and expects it would be eligible for inclusion in the FTSE UK indices.
The Group has engaged Investec Bank Plc as Sponsor, Sole Global Co-Ordinator and Sole Bookrunner in the event that the Offer proceeds, and Clearwater International as Financial Advisor to shareholders and the Company.
Bob Ellis, Chairman of Stelrad Radiator Group, commented: “Stelrad is a leading specialist manufacturer and distributor of steel panel radiators with a track record dating back to the 1930s. Today, the Group benefits from an unrivalled combination of brand strength, highly efficient operating infrastructure and market access, trading across six core geographies of the UK, Benelux, Germany, France, Turkey and Poland.
“The European countries where the Group operates have been progressive in advancing the decarbonisation agenda through strong regulation and policies and Stelrad’s products will play a key role in the longer-term transition away from traditional gas boilers with larger surface area radiators in particular being well suited to low temperature systems such as heat pumps.
“The Group’s highly experienced management team have a wealth of industry experience and a long-standing commitment to the business having put in place a strategy that has seen the business deliver a resilient financial performance in recent years and, as a result, the Group is well placed to build on the strong momentum through both organic and inorganic growth opportunities.”
Trevor Harvey, Chief Executive Officer of Stelrad, commented: “Our successful growth strategy has been built upon a combination of standardised product design across all our manufacturing facilities, a key focus on specifiers across all of our end-markets and continued range innovation, alongside our multi-brand strategy that enables products and brands to be tailored to specific channels. As a result, we are the number one steel panel radiator business in a number of the markets where we operate.
“Hydronic systems dominate the heating market and steel panel radiators remain by far the most popular heat emitter with demand driven by both first-time installations and replacements. The overall market value is growing thanks to positive underlying market activity and continued adoption of premium panel radiators with the move towards decarbonisation presenting numerous opportunities and limited disruption to our longer-term growth plans.
“Our extensive product offering, strong relationships with all major distributors and specifiers plus this supportive market backdrop mean that we are confident of delivering further upside as part of our growth plan as we continue to play a leading role in keeping Europe warm.”
Stelrad is a leading specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey, selling an extensive range of standard and premium steel panel radiators, low surface temperature (LST) radiators, towel warmers, decorative steel tubular radiators and other steel (column) radiators to more than 500 customers annually.
The Group enjoys long established commercial relationships with many of its customers, having served each of its top five customers, representing 35 per cent of its revenue for the year ended 31 December 2020, for over twenty years.
The Group focuses on a number of strong, established brands and has a well invested, low-cost manufacturing base, supported by extensive distribution facilities.
The Group is headquartered in the United Kingdom and has been a leading supplier across Europe for over twenty years, with manufacturing and distribution facilities in the United Kingdom, the Netherlands and Turkey, additional distribution facilities in Poland and Denmark and sales personnel in seven other countries, including China.
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