Electra Announces GBP662.5m refinancing of Baxi...

Electra Announces £662.5m refinancing of Baxi Group

 

 

Electra Investment Trust ('Electra') is pleased to announce the refinancing of
Baxi Group ('Baxi'), in which funds advised by BC Partners will become new
shareholders in the business. As part of the transaction, which is expected to
complete in February, Electra will realise £97m from its investment.

 

Baxi is a major European heating group supplying a full range of space and
water heating products for both residential and commercial applications. For
the year ended 31 December 2002, Baxi had sales of £657.3m and an operating
profit of £54m.

 

Electra Partners Europe, the manager of Electra and other funds, together with
Candover created Baxi in 2000 when, through Newmond which they had bought for £
360m in 1996, they acquired the employee owned Baxi. Electra Partners Europe on
behalf of its clients injected a further £25m into Baxi to finance the merger,
becoming the leading shareholder in the merged group with a 28% holding.

 

Proceeds attributable to Electra immediately on completion are estimated at £
97m in cash. This disposal represents an uplift in Electra's net asset value
per share of 21.2p over the audited net asset value of 760p per share as at 30
September 2003. Proceeds from the refinancing will be used principally to
reduce bank borrowings but as part of the transaction, Electra will reinvest £
15m to maintain a significant shareholding in the business going forward.

 

The total gross aggregate proceeds on completion attributable to Electra and
the other funds managed by Electra Partners Europe amount to £120m.

 

Hugh Mumford, Chief Executive of Electra Partners said: ' We are pleased with
the increased value that has been generated in this investment. We have great
faith in both the management team and the prospects for the business and are
very pleased to be continuing as a shareholder.'

 

Commenting on the refinancing, Mark Edwards, CEO of Baxi Group, said: 'This
marks a new chapter for Baxi and we are particularly pleased that Electra
Investment Trust have chosen to reinvest in the Group. Since the original
investment in the buyout of Newmond, Electra have fully supported the Group's
transformation from a collection of businesses invested in building products to
being one of the leading European Heating Groups that Baxi is today. We now
look forward to a new and exciting period for the Group.'

 

Enquiries:

 

Hugh Mumford, Electra Partners Europe Limited, 020 78316464

Nick Miles, M: Communications, 020 71531535

 

 

Notes to Editors:

 

In his Annual Statement made in December 2003, the Chairman of Electra reported
that prospects for realising a number of portfolio companies over the next 12
months had increased and anticipated a significant improvement in Electra's
financial position by 30 September 2004 if business confidence continued to
grow and realisations were concluded at projected values. Over the four and a
half year period to 30 September 2003 Electra has realised over £1.3 billion
from its portfolio.

 

Electra Partners Europe Limited, the Manager of Electra, is a subsidiary of
Electra Partners Limited, the independent private equity group which had a
total of £1.5 billion of funds under management at 30 September 2003 and has
invested over £625m in the five years to that date.

 

Today Electra has also announced the sale of Vendcrown which represented an
uplift in Electra's net asset value per share of 23.6p over the audited net
asset value of 760p per share at 30 September 2003. The full announcement of
the Vendcrown transaction is being made to the UK Listing Authority and copies
will be available from M: Communications. The total uplift in Electra's net
asset value per share amounts to 44.8p as a result of the Baxi Group and
Vendcrown transactions.