Highlights

  • Strix plans to sell Billi for GBP 110 million, generating ~3x return on initial investment.
  • Disposal proceeds expected to eliminate net debt and provide resources for core operations.
  • Completion targeted for 30 January 2026, subject to shareholder approval at a General Meeting.

Strix Group Plc (LSE:KETL) has entered a conditional sale and purchase agreement to sell its Billi business, including Strix Australia Pty Ltd and its regional subsidiaries, to Birmingham Bidco Pty Ltd for GBP 110 million on a cash-free, debt-free basis. The transaction will include customary post-completion adjustments and requires shareholder approval at a General Meeting scheduled for 8 January 2026. Completion of the Disposal is expected by 30 January 2026.

The agreed consideration values Billi at 47.8 pence per share, approximately 18% higher than Strix’s current share price of 40.7 pence. Strix acquired Billi in November 2022 for around GBP 38 million, making this sale equivalent to an approximate 3x return on the original investment. All related debt from the initial acquisition was repaid in November 2025.

Strategic and Financial Rationale
Strix has experienced macroeconomic and geopolitical challenges, particularly in its Controls division, including indirect tariff impacts and a weaker USD. These factors have affected trading performance and increased net debt leverage. The Disposal is aimed at reducing the Company’s net debt, estimated to be around GBP 68 million at the time of completion.

Operational measures already implemented include restructuring production volumes at its China facility to reduce inventory by approximately GBP 8 million over the second half of the financial year and extending non-recourse debt factoring in Italy, lowering debtor balances by about GBP 2 million. The final dividend for FY24, originally scheduled for December 2025, was cancelled to focus on debt reduction.

Performance and Billi’s Platform
Billi has reported double-digit growth rates at constant exchange rates and continues its geographical rollout. For the 12 months ending 31 December 2025, Billi is expected to generate revenue of approximately GBP 47 million and adjusted EBITDA of around GBP 10 million. Under Strix ownership, progress includes:

  • Opening a new production facility in Australia with higher capacity.
  • Launching a flagship showroom and event space in Farringdon.
  • Strengthening management through strategic hires and enhancing service capabilities.
  • Expanding UK operations and securing distributor contracts in Europe.

A memorandum of understanding has been agreed to explore a manufacturing and development partnership between Strix and Billi post-Disposal.

Bidco and Use of Proceeds
Birmingham Bidco Pty Ltd, incorporated by Crescent Capital Partners VII, a Sydney-based private equity firm, will acquire Billi. Crescent Capital invests primarily in mid-market companies across Australia and New Zealand.

Proceeds from the Disposal, net of transaction costs (~GBP 107 million), will be used to repay existing debt in full. The Group plans to retain a reduced debt facility, invest in strategic growth initiatives, and return part of the capital to shareholders, including a GBP 10 million share buyback programme.

Share Price Snapshot
KETL was trading 16.11% higher at GBX 47.20 per share as of 19 December 2025.