Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Carpetright has been acquired by its largest investor Meditor Holdings Limited (MHL), in deal which values the retailer at £15.2m.
The retailer announced that MHL will acquire the entire issued and to be issued share capital of Carpetright, which is not already owned by the investment management company, and shareholders will be entitled to receive 5p in cash per Scheme Share.
Commenting on the acquisition, Bob Ivell, chairman of Carpetright, said: “We believe the MHL offer is in the best interests of all stakeholders.
“While we have made significant progress with our recovery plan for the Carpetright Group, our ability to invest in the future of the business has been constrained against the backdrop of limiting banking covenants and a very challenging consumer market.”
He added: “With a recapitalised business and the backing of a committed new owner with the resources to invest in Carpetright for the long term, we will be able to complete our recovery in the private arena and emerge as a stronger business.”
It comes after the retailer revealed it was in talks with Meditor over a potential sale of the business in October, as it seeks a way to pay its debt facilities.
Carpetright said that approximately £80m is needed to repay its debt facilities; meet its ongoing working capital requirements; and to provide the company with growth capital.
The board of Carpetright noted that the company was “performing well despite the challenging economic backdrop and intense sector competition” in October. It said the group’s profitability is “improving” as the company drives store efficiency and reduces the central cost base.
Ivell said at the time: “Shareholders will be aware that we have been engaged in comprehensive refinancing discussions to replace existing facilities which expire at the end of this calendar year.
“The possible offer being announced today would put in place a new financing structure for Carpetright which would enable us to continue our recovery and make necessary investments in improving our business.”
