InvoCare / TPG Capital reach agreement for buyout

August 9, 2023/Finance/

According to a press release dated August 9, 2023, (today) issued by InvoCare Limited of Australia, the company has agreed to be acquired by TPG Capital, a global private equity firm headquartered in San Francisco, California. TPG Capital had launched a buyout offer for the company in March.

You should be able to download InvoCare’s announcement, which includes more detailed terms, from here.

According to the announcement, “an entity ultimately owned by funds managed or advised by TPG Capital Asia (“TPG”) or its related entities, to acquire all the issued capital of InvoCare which is not already held by it or its related entities for $12.70 per share in cash (“Cash Consideration”) by way of a scheme of arrangement inclusive of a fully franked special dividend of up to $0.60 per InvoCare share.”

Again, according to the announcement, the implied equity value of the deal is US$ 1.18 billion and the price indicates a 37 Price to Earnings (P/E) ratio using InvoCare’s 2022 FY.

InvoCare is Australia’s largest death care provider as well as a leading death care provider in New Zealand and Singapore. The company is also a leader in pet cremations in Australia.

Here is the website for TPG Capital.

Here is the website for InvoCare.

Funeral Director Daily take: This apparent purchase marks the 2nd purchase of a large death care company by a private equity company in less than a week. Last week it was the purchase of large direct cremation provider Pure Cremation of Great Britain. You can read about that transaction here.

What these purchases mean for funeral service and the death care industry remains to be seen.

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