TPG Global Seeks to Buy Australian Funeral Home Owner Invocare

Australian funeral home operator InvoCare Ltd. has surged the most on record after receiving a takeover approach from TPG Global, LLC.

(Bloomberg) — Australian funeral home operator InvoCare Ltd. has surged the most on record after receiving a takeover approach from TPG Global, LLC.

TPG offered to buy InvoCare at A$12.65 per share, valuing the Sydney based company at A$1.82 billion ($1.22 billion). Shares in the Australian firm rose as much as 38% to A$12.39. TPG has already acquired a stake of about 17.8% via a combination of physical ownership and derivatives.

The unsolicited, preliminary and non-binding proposal was a 41% premium to Invocare’s A$8.95 closing share price on Monday. There is no certainty it will result in a deal. The company provides funeral services in Australia, New Zealand and Singapore, and operates private memorial parks and crematoria in Australia and New Zealand.

InvoCare FY Operating Earnings A$50.2M Vs. A$45.1M Y/y

TPG Global in 2021 tried to acquire Australian salary packaging firm Smartgroup Corp. before the deal was abandoned in October of that year.

Australia’s Big Wave of Takeovers Start With Minority Stakes

TPG Global is part of TPG Capital, a San Francisco-based private equity firm with more than $135 billion of assets under management. Though the firm’s first investment in a funeral provider globally, TPG has invested in subsectors adjacent to the health care industry, including drug-testing firm Novotech Health Holdings, veterinary business Greencross Ltd. and non-prescription drugmaker iNova Pharmaceuticals.

–With assistance from Harry Brumpton.

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