Strix Group has agreed to dispose of its Billi business, comprising Strix Australia and each regional subsidiary, to Crescent Capital Partners for £110m.

The kettle safety controls manufacturer acquired the water systems firm in November 2022 for around £38m.

The move comes after Strix encountered macroeconomic and geopolitical headwinds, particularly in its controls division, in part due to indirect tariff impacts and a weakening US dollar.

Furthermore, it has performed a significant restructuring of planned production volumes in its China factory, aimed at reducing inventory on hand by £8m over the last six months of the financial period.

Following the announcement, shares in Strix increased by more 14%.

Chief executive officer at Strix, Mark Barlett, described the disposal of Billi as a “transformational milestone” for the firm and is a demonstration of its “disciplined approach to capital allocation and value creation”.

He concluded: "Over the three years that Billi has been part of the group, we have successfully enhanced its operational performance and strategic positioning, delivering an absolute return of c. three times on the original investment made in 2022.

"The proceeds from the disposal will significantly strengthen Strix's balance sheet, enabling the company to eliminate its net debt and materially improve financial flexibility. This represents a pivotal step in reinforcing the long-term resilience and financial health of the group, allowing us to invest with confidence in our core business and support future growth initiatives.

"Looking ahead, our focus remains firmly on sustaining our market-leading position across heating, safety and filtration technologies, while continuing to deliver the highest standards of service to our customers. Above all, Strix remains focused on creating sustainable, long-term value for shareholders, which sits at the very heart of our strategy."

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