Europe's largest manufacturer of lawnmowers completes debt refinancing

Global Garden Products (GGP), the manufacturer and distributor of lawnmowers and powered garden equipment, has completed the rescheduling of its debt via a UK scheme of arrangement.

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.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

Regional showcase - GroSouth

Regional showcase - GroSouth

A wide range of exhibitors and speakers will feature at GroSouth to update visitors on all the latest industry topics, writes Matthew Appleby.

Pots and containers

Pots and containers

Superior propagation products can justify extra expenditure by providing precise cell fill, optimum root development and healthy plugs, writes Sally Drury.

Business Planning - Inflationary pressures

Business Planning - Inflationary pressures

How can horticulture businesses respond to Brexit-fuelled inflation? Neville Stein outlines the options.

Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs
More Horticulture Jobs

Garden retail Top 100 GARDEN CENTRES

Our exclusive ranking of garden centre performance by annual turnover. NEW: 2016 listing just published

Garden Centre Prices

GARDEN CENTRE PRICES w/e 21 September 2016
GARDEN CENTRE PRICES w/e 24 August 2016

Pest & Disease Tracker bulletin 

The latest pest and disease alerts, how to treat them, plus EAMU updates, sent direct to your inbox.

Sign up here