SYDNEY, AUSTRALIA: TPG Capital Asia, a private equity firm, has agreed to buy InvoCare Limited, the largest funeral services provider in Australia, New Zealand and Singapore, for $1.8 billion in cash. The deal was announced on 9 August 2023, after months of negotiations.
Under the scheme of arrangement, InvoCare shareholders will receive $12.70 per share in cash, inclusive of a fully franked special dividend of up to $0.60 per share. The offer price represents a 42% premium to InvoCare’s closing share price of $8.95 on 6 March 2023, the day before TPG made its first approach.
For InvoCare shareholders who can utilise franking credits, the cash consideration and the benefit of franking credits imply a value of up to $12.96 per share.
The InvoCare board unanimously recommended that shareholders vote in favour of the scheme, subject to an independent expert’s opinion and no superior proposal emerging. The board also said that all directors intend to vote their shares in favour of the scheme.
The scheme is subject to various conditions, including approval by InvoCare shareholders at a scheme meeting, court approval, regulatory approvals and no material adverse change. The scheme is expected to be implemented by the end of 2023.
InvoCare operates 290 funeral locations and 16 cemeteries and crematoria across Australia, New Zealand and Singapore. It also provides prepaid funeral contracts and pet cremation services. In 2022, it reported a net profit after tax of $50.2 million, up from $45.1 million in 2021.
TPG is a global investment firm with more than $135 billion of assets under management. It has invested in various sectors, including health care, consumer, media, technology and financial services. Some of its portfolio companies include Novotech Health Holdings, Greencross Ltd., iNova Pharmaceuticals and Cirque du Soleil.
Mehmet Kutman, Chairman/CEO of TPG Global, said that he was delighted that InvoCare had accepted the offer and that the deal represented another significant milestone for TPG as it continued to grow its global cruise port network. He also said that the deal was a further endorsement of TPG’s operating capabilities and the benefits of its stakeholder partnership approach.
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