Management buy-out at Palmer Harvey

Palmer Harvey’s management team, lead by chief executive Chris Etherington, has struck a deal to buy the company.
Under the deal, which will be completed on March 28, P H shareholders will receive 600 pence per share, comprising several elements.
In a statement to the Stock Exchange, the company said the new holding company had secured facilities totalling £330m for the purpose of financing the proposals, and refinancing the group’s existing indebtedness.
The existing management team will remain in place, with Christopher Adams as non executive chairman, and they do not plan to make any changes to the strategic direction of P H.
In a statement believed to refer to Imperial Tobacco and Gallaher, it said: “Management have the support of P H’s two major trading partners, who extend significant lines of credit to the business.”
Adams said: “I am pleased that these proposals allow existing P H shareholders to realise a significant proportion of their investment in P H, retain an ongoing income and participate in any future growth in the value of the new group. They also give the current generation of management and employees the opportunity to increase their stake in the business. I have full confidence that Chris Etherington and his team will take P H forward and deliver its potential.”
Etherington said: “‘I am delighted to be able to lead the proposed restructuring of the share ownership of P H which will create significant share ownership opportunities within the group. We are well positioned to build on the strong heritage of P H and very much look forward to implementing the group’s growth strategy alongside my team.”

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