LONDON (March 23)—British Vita P.L.C.'s board of directors has accepted an enhanced buyout offer from the U.S. private equity firm Texas Pacific Group, declaring the $6.77 per-share bid "fair value" for shareholders.
The latest bid was Texas Pacific's fourth formal offer and represents a 3.1-percent increase over its previous bid two weeks earlier and more than 50 percent higher than the U.S. group's initial bid in January, which was slightly over the trading price at that time. The bid is more than 19 times earnings and values British Vita, a producer of polyurethane foam, plastics and fibers, at $1.27 billion.
"British Vita is proud of its track record of delivering shareholder value, and the board is pleased that it has been able to continue this by agreeing to a dealàwhich it believes delivers fair value to shareholders today for the business and its prospects," said British Vita Chairman David Cotterill.
Texas Pacific "will take control of a well-run, cash-generative business, which is well placed to take advantage of the opportunities offered by the markets which it serves," Cotterill added.
Texas Pacific expressed its delight "that the directors of British Vita have unanimously recommended our offer. TPG is excited about backing British Vita, a company with such strong underlying businesses and market positions," Stephen Peel, partner of TPG in London, said in a statement.