Dignity agrees to £281m takeover deal
Dignity has revealed it has agreed with a consortium backed by former direct line founder Sir Peter Wood a takeover deal which values the company at £281m.
The group, which is made up of SPWOne V, Castelnau and Phoenix Asset Management Partners already had a 29% stake in the company and offered 550 pence-per-share in cash to shareholders.
Dignity said the offer represents 29.3% to the closing price of 425.5 pence per Dignity Share on 3 January 2023.
The deal also includes the option for Dignity shareholders to stay invested in the company via an unlisted share alternative in Valderrama or a listed share alternative in Castelnau.
Commenting on the acquisition, Sir Peter Wood, chair of SPWOne, said: “Dignity has long-term growth potential – the signs are clear to me. However, given the challenges and significant development work needed, the best way forward for Dignity is as a private company, benefiting from our unique combination of experience and customer-orientated expertise.
“We are offering a very fair price in cash, or shareholders can stay on the journey with us as we look to implement our strategy to create significant value over the medium term.”
Gary Channon, CIO of PAMP and former CEO of Dignity, added: “Our strategy will largely be a continuation of the current strategy, albeit accelerated and with access to investment capital, while allowing Dignity’s management team and employees to work in a safeguarded, supportive environment to achieve their long-term strategic objectives. We are good custodians of businesses, ensuring the customer stays at the front of our thinking, while operating a constructive environment where people can thrive.”
Giovanni (John) Castagno, chair of Dignity, concluded: “In recent years Dignity has made good progress in implementing its strategy to gain market share, while addressing the impact of both Dignity-specific and industry-wide issues.
“But the end-of-life services market in the UK faces an elevated level of uncertainty from increased competition, structural market changes and more cost-conscious consumers. The proposed Offer represents an opportunity for existing Dignity Shareholders to achieve a significant cash premium despite that uncertainty.”
