Davis Polk is advising the joint-bookrunners to Electrocomponents plc on its placing of 21,518,181 million new ordinary shares at 825 pence per share. Concurrently with the placing, retail investors subscribed 300,000 new ordinary shares at the placing price through a retail offer on the PrimaryBid platform. In aggregate, the new ordinary shares represent approximately 5% of the company’s issued share capital prior to the equity fundraise and the company raised gross proceeds of £180 million. The new ordinary shares will be admitted to the premium segment Official List and to trading on the London Stock Exchange.

The proceeds will be used to fund the $145 million acquisition of Synovos, an integrated supply solutions business and £40 million acquisition of Needlers, a supplier of products and solutions in safety, hygiene and PPE, whilst targeting pro-forma net debt to adjusted EBITDA of below 1x for the year ending March 31, 2021. This will preserve the group’s financial strength and flexibility to invest in working capital to drive organic growth and execute on a growing pipeline of attractive bolt-ons.

Electrocomponents is a global omni-channel partner for industrial customers and suppliers who are involved in designing, building or maintaining industrial equipment and facilities. With operations in 32 countries, the company stocks more than 500,000 industrial and electronic products, sourced from over 2,500 leading suppliers. Electrocomponents is listed on the London Stock Exchange and is a constituent member of the FTSE 250 index.

The Davis Polk corporate team includes partner Will Pearce and associate Vivek Thanki. Partner Reuven B. Young and associate Eyvana M. Bengochea are providing U.S. securities law advice. Partner Jonathan Cooklin and associate Freddie Schwier are providing tax advice. All members of the Davis Polk team are based in the London office.

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