Grave affair: Propel Funeral Partners bankers up, eyes on IFM

afr.com:

As InvoCare’s shareholders prepare to vote at the scheme meeting that would formalise its $2.2 billion take-private by TPG Capital on October 31, it is the No.2 death care services player’s turn for an open casket.

Propel is the second-biggest player in Australia’s highly fragmented death care industry.  Michele Mossop

Albin Kurti-led Propel Funeral Partners, which has a 5.9 per cent market share and $522 million value on the local bourse, has landed on private capital’s radar.

As flagged by this column in June, Propel responded to heightened interest in the death care sector by running a so-called beauty parade of investment banks to hire a house adviser, ultimately selecting Barrenjoey Capital Partners to consider defence strategies,

Sources said a number of parties had since run the numbers on Propel, including IFM Investors, led by Stuart Wardman-Browne, who set up its private equity unit seven years ago. It is unclear whether IFM’s interest in the company has progressed or if the fund manager plans to table a formal offer.

Kurti declined to comment when contacted by Street Talk on Sunday.

Propel has had a target on its back since No.1 player, InvoCare, fielded a bid from private equity giant TPG in March and finally agreed to a deal five months later at a $2.2 billion enterprise valuation. That followed due diligence extensions, pre-AGM drama and a price cut.

Scheme documents for InvoCare put its Australian market share at 24.1 per cent, followed by Propel at 5.9 per cent. Propel has historically traded at higher multiples than its larger rival as investors rewarded it for an aggressive acquisition strategy and its funeral volume growth, while InvoCare lost points for operational troubles.

Propel has had Viburnum