TPG’s InvoCare takeover proposal (almost) a done deal at $12.70

afr.com:

TPG Capital’s $1.8 billion pursuit of InvoCare appears to be finally over, with the private equity firm and its funeral services provider target agreeing to terms for a binding offer on Tuesday, sources told Street Talk.

While the price has been locked down – at $12.70 per share, down from the $13 that the indicative offer was lobbed at – there remain several minor hurdles that are expected to be cleared in time for market open. InvoCare has been in a trading halt since Monday morning after TPG indicated at the weekend it was prepared to walk unless the price was lowered.

InvoCare has 2000 employees and conducted 40,000 funerals in 2022. Nick Moir

At $12.70, the new offer would be similar to the $12.65 per share offer first proposed by TPG earlier in the year. InvoCare refused to take that price, leading its suitor to briefly walk away before returning with a higher bid.

In particular, sources said, TPG and InvoCare disagreed about what impact a weaker earnings performance and outlook would have on the value of the company following due diligence. TPG, as Street Talk has previously reported, had also cited the weaker performance among competitors.

InvoCare is being advised by Gresham Advisory Partners, Goldman Sachs and Clayton Utz. TPG has engaged UBS, Jarden and Gilbert + Tobin.

TPG has been busy this year, bulking up pet retailer Greencross with acquisitions ahead of a mooted IPO. The private equity fund has already sold a 45 per cent stake in the pets and vets business to AustralianSuper and the Healthcare of Ontario Pension Plan. It has also expanded its team, bringing over Antonia Zou from rival buyout group KKR among others.

InvoCare operates brands including White Lady Funerals, Le Pine, Simplicity Funerals,