Zenith Hygiene Group, the supplier of cleaning and hygiene products to the hospitality sector, has been taken private in a deal backed by Stanley Fink, the British financier.
A management team led by Ringo Francis has bought the business in a transaction worth £20m, representing a 100% premium.
Fink, who is founder of Man Group, one of the world’s biggest hedge funds, supported the deal, injecting £10m of equity.
The outlay has given Fink, who will chair the board, a 75% stake in the business, while the management team – having rolled over their existing equity stakes – has emerged with a 25% share.
Francis, who stepped down as chief executive of Zenith in February to pursue the buyout, said: “The business is much stronger now that it has been recapitalised.
“We plan to take market share by offering value to customers. We will also restore the service levels that people have come to expect from Zenith.”
Alongside Francis, the new management team will comprise Arvinder Walia as chief operating officer. Members of the original senior management team including Tony Cousins, Colin Fogarty and Derek Lafbery will also remain with the business.
