Ultimate Products eyes sale or IPO and mandates Shore Capital
The owners of Ultimate Products, which has the licence to sell Russell Hobbs products to retailers, has hired City advisers Shore Capital to explore a potential sale or IPO of the business.
The Manchester-based firm could fetch between £50m and £60m, according to people familiar with the situation. Shore Capital has been asked to explore all options for Ultimate Products, although a decision is thought to be some time away.
The company, which also houses brands such as Salter, Beldray and Body Contour, saw sales rise 21 per cent to £64.1m last year with operating profit hitting £5m.
Specialising in luggage, homewares and electrical goods, it supplies major retailers including B&M, Argos, Halfords, Homebase and Shop Direct and boasts operations in over 30 different countries, including the United States.
Founded in 1997 by chief executive Simon Showman and Barry Franks, Ultimate Products was previously backed by private equity firm LDC, which held a 46 per cent stake.
However, LDC exited the firm in 2014 via a management buy-out, with Showman now the majority shareholder.