Corporate Team advises on AIM IPO of Sprue Aegis plc

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Walker Morris corporate lawyers advise on fifth deal in eight days

The Corporate Team at law firm Walker Morris has reinforced its expertise in the capital markets having advised Nominated Adviser and Broker, Westhouse Securities, in relation to Sprue Aegis plc’s admission to AIM.

Sprue Aegis, which is one of Europe’s leading home safety products suppliers and which will have a market capitalisation of approximately £90 million at the placing price, intends to raise £8 million by way of a placing of new shares.

With a focus on innovation and high quality manufacture, Sprue Aegis has grown rapidly since its formation in 1998 to become one of Europe’s leading home safety products suppliers.  With total sales of £48.4 million in the year ended December 2013, it has extended its product range from smoke alarms into CO alarms and related accessories and was named as one of the Sunday Times Virgin Fast Track 100 companies from 2008-2012.

Richard Naish who led the team at Walker Morris said:

“Our corporate team has completed several capital market transactions in the last six months which is a reflection of the improved market conditions and increased investor confidence.  We’ve been delighted to advise on this transaction which further demonstrates our own reputation and expertise in equity capital markets work and follows our work on the £120 million Main Market IPO of Servelec Group plc at the end of last year.”

The other deals the Team has completed in the last week include advising:

  • Renew Holdings on its acquisition of Clarke Telecom
  • the management of Cascade HR on its acquisition by IRIS Software
  • Key Capital Partners on its investment in Hallam Medical
  • Help-Link UK Ltd on its acquisition of Miller Pattison.

The net proceed of the placing will be used to provide additional working capital to support sales growth across Sprue Aegis’ markets, particularly France, and to fund product development.

Commenting on the Placing and Admission to AIM, Graham Whitworth, Executive Chairman & Group CEO of Sprue Aegis said:

“The Board is very pleased to announce that the Company has today applied for its shares to be admitted to trading on AIM. The Company has grown significantly in the last few years, and the Board believes now is the right time both to raise new money for the Company and to move its listing to AIM.

“The Company’s increasing sales to the retail sector has increased our working capital requirement and the proceeds of the Placing are important to ensure the Company is well placed to capitalise on the expected significant opportunity in France, whilst continuing our commitment to innovation and development of new products.

“The Board believes that the Placing and transfer of listing to AIM will increase the Company’s profile, broaden the investor base, increase liquidity and provider greater access to capital for any future potential fundraising.

“The response from existing and new investors to the Placing was very encouraging and the Board is pleased that this has allowed blue-chip institutional investors to acquire meaningful stakes in the Company. We look forward to growing the business further on AIM.”

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