According to the new terms, sanctioned as of 23 June, both tranches of the company’s EUR 223.8million bank facility have been extended to 31 December 2020 and at market standard margins.
As part of its debt management exercise, the company is raising up to EUR 160m asset-backed lending and revolving credit facilities.The company, which has brands such as Stiga, Alpina, Mountfield, Atco and Castelgarden, plans to reduce its long-term debt by around EUR 60 million to EUR 170million.
GGP estimates sales of EUR 480 million for the FY 2016, a three per cent increase on the previous year (four per cent adjusted for FX). This growth is being driven by new sales partnerships and an increased demand for powered garden equipment in a number of markets, especially the UK, Germany, Italy, Benelux and Nordic markets.
EBITDA is expected for the FY 2016 to be EUR 50 million, a EUR 6 million/15 per cent increase on the previous year.
GGP, headquartered in Castelfranco Veneto, Italy, sells over one million units a year in over 70 countries around the world, with a manufacturing base in Italy, Slovakia and China. It has developed a leading market share in Europe of well above 20 per cent market share in the two largest product categories, lawnmowers and lawn tractors. GGP says its brands have performed strong lyin recent years, growing well ahead of the overall market (CAGR at 7.4 percent 2011 - 2016).
Georg Metz, group chief executive, said, "We are very pleased with the new finance structure as it will support our growth strategy. Going forward, our priority is developing innovative products including a new generation of battery powered products and robots and growing our presence in both existing and new markets. With strong brands, a growing market share and a robust financial base, we are now well-positioned to deliver further international growth."The global market for powered lawn and garden equipment is worth approximately EUR 12 billion and shows a circa 1.5 percent growth rate from 2014.