Rubix Group Holdings Limited, the group that includes previously publicly quoted company Brammer, is planning a return to the stock market.

The initial public offering (IPO), if it goes ahead, is expected to see the company raise around EUR850mln through the issue of new shares. The group is owned by private equity group Advent International, which may well flog some of its shares as part of the IPO.

READ Brammer board welcomes private equity bid

Rubix, formed through the merger of Brammer and IPH in September 2017, operates across three geographical segments, Western, Central and Northern Europe, and holds leading positions across a number of its countries or regions of operation, including France, Italy, Spain, CEE, Germany, the United Kingdom and Benelux.

Following admission to London’s official list, the company is expected to have a free float – shares not owned by committed long-term holders – of at least 25%, which would mean the stock would be eligible for inclusion in FTSE UK indices.

Rubix helps to keep the factories and plants of some of Europe’s largest industrial companies up and running, the group said. It supplies mission-critical products and services for maintenance, repair and overhaul (MRO).

It operates across three geographical segments (Western, Central and Northern Europe), and claims to hold leading positions across a number of its countries or regions of operation, including France, Italy, Spain, Central & Eastern Europe, Germany, the United Kingdom and Benelux.

In the 12 months to the end of June, Rubix generated revenue from ongoing operations of EUR2,498mln and adjusted underlying earnings (EBITDA) of EUR221mln.

Group borrowings have risen steadily to EUR170.9mln at the end of June 2021 from EUR65.8mln at the end of 2018.

“Over the past three years, we have grown rapidly to establish Rubix as Europe’s leading distributor of industrial products and services, now present in 22 markets and working with many of the biggest names in European manufacturing,” said Martin Thompson, the chief executive officer (CEO) of Rubix.

“Becoming a public company is the natural next step for us,” he added.

“We believe we are the consolidator of choice in a growing and fragmented market, which makes our opportunities more exciting than ever in a world where the security and integrity of supply chain are a priority, Thompson said.

David Tyler, who is set to be the chair of Rubix when it floats, said Rubix’s business model was stress-tested during the pandemic and demonstrated strong resilience.

“Looking forward, Rubix has long-term organic opportunities to continue to grow, take market share and reinvest in the business. In addition, it has inorganic opportunities for profitable growth through continued consolidation,” Tyler said.

Shonnel Malani, the managing director at private equity outfit Advent International said Rubix has a well-invested platform for future growth.

“Rubix provides a superb case study demonstrating the value that can be created by carefully bringing together great businesses to create a market leader, with a strong management team, a clear growth strategy, and a robust approach to corporate governance,” Malani said.

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