UK- LDC refinances Ultimate Products with new debt from HSBC

Deborah
06 November 2009

Tweet
Facebook
LinkedIn
Google plus
Send to

LDC has agreed a refinancing of portfolio company Ultimate Products, a homeware merchandise supplier, that will see HSBC inject £15m of new debt facilities into the business.

Oldham-based Ultimate Products supplies home-ware, kitchenware and electrical products to highstreet retailers across the UK. In 2005, LDC backed the buyout of Ultimate from chairman Barry Franks and managing director Simon Showman, in a deal valued at £26m. LDC invested £11m in exchange for a 46% stake in the company. Barclays Leveraged Finance supported the deal, providing a revolving credit facility of £15m. Both Showman and Franks retained minority holdings in the business, while Showman continued as CEO. At the time of the transaction, LDC hoped to double Ultimate's turnover of £42m, pursuing an acquisitive strategy. In April of this year, Ultimate acquired Manchester-based electronic equipment firm Intempo Digital for an undisclosed sum. Ultimate now has a turnover of £60m.

The new funding will be used to support the further expansion of the company's supply chain globally and closer to home in the UK. Ultimate is also looking at a number of international acquisition prospects, following the takeover of Far-East based rival Active Asia last year.