Dignity, the UK’s greatest funeral supplier, has agreed to be taken over in a deal valuing it at £281m.
The corporate is being purchased by a consortium of funding companies led by Sir Peter Wooden, the founding father of insurers Direct Line and esure, and Gary Channon, the previous chief govt of Dignity.
Dignity, which operates from greater than 700 places however is behind the Coop when it comes to market share, has seen its earnings squeezed in recent times by a rising shopper desire for reasonable, no-frills funerals .
The corporate mentioned SPWOne V, Castelnau and Phoenix Asset Administration Companions provided 550 pence per share in money, following a number of unsolicited presents obtained final yr.
The phrases represented a 29.3% premium to the January 3 closing worth of 425.5p earlier than the supply interval started.
The consortium, which already owned or managed about 29 p.c of Dignity, mentioned in a joint assertion that the funeral companies supplier will get hold of important funding below personal possession.
The deal contains the choice for Dignity shareholders to stay invested within the firm by an unlisted share different in Valderrama, an oblique father or mother firm of the bidder Yellow Bidco Ltd, or a listed share different in Castelnau.