Consortium to acquire Dignity Plc at an enterprise value of £789 million

Dignity Plc

LONDON, UK: Bidco, a consortium comprised of SPWOne V Limited, Castelnau Group Limited and Phoenix Asset Management Partners Limited, has made a recommended cash offer to acquire Dignity Plc at the rate of 550 pence per share.

The acquisition values the entire issued and to be issued share capital of Dignity at approximately £281 million on a fully diluted basis and implies an enterprise value of approximately £789 million.

It may be mentioned that Castelnau and Phoenix Asset Management Partners owned or controlled in aggregate 14,876,159 Dignity Plc shares, representing approximately 29.08% of Dignity’s fully diluted share capital.

Dignity’s estimated maximum underlying operating profit for the 52 weeks ended 30 December 2022 on a post-IFRS 16 basis of £20 million and estimated maximum underlying operating profit before depreciation and amortisation for the 52 weeks ended 30 December 2022 on a pre-IFRS 16 basis of £37 million constitute profit estimates for the purposes of Rule 28 of the Takeover Code.

Dignity Plc is an established business in the end-of-life market, with dedicated employees, providing a vital service to customers in often difficult circumstances.

The consortium’s combined experience in the end-of-life-market, as well as its skill in creating market-leading providers and transforming industries through disruptive operating models, gives it belief that it can enhance Dignity’s offering as a trusted provider with high standards and quality and unlock Dignity’s potential to be the leading end-of-life business in the United Kingdom.

Since inception, Dignity has developed into an important player in the industry, operating 46 crematoria and with 725 funeral branches and over 388,000 pre-need funeral plans held in trust.

Bidco recognises Dignity’s track record and strongly believes in its current strategy, including its transition to a more competitive pricing model. Bidco believes that, under private ownership, Dignity will not only have access to patient, long-term capital, but also a supportive environment for management to implement its current strategy, ahead of an envisaged medium-term exit.

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