Texas Pacific ups bid for British Vita

The US private equity firm has announced an increased bid after the UK foam rubber maker rebuffed its first offer as undervaluing the company.

Texas Pacific Group has announced a bid of 335 pence per share for British Vita, a foam rubber manufacturer currently listed on the London Stock Exchange. The offer values the company at £624 million (€905 million; $1.2 billion).
 
British Vita announced yesterday that it had rejected an undisclosed offer from an unnamed suitor on the grounds that it undervalued the company. The company said in a statement that it would 'treat seriously any proposal put to it which it believes will deliver fair value to its shareholders'.
 
Following the announcement yesterday, shares in the company rose 15 percent to 334 pence.
 
Texas Pacific announced its revised offer this morning. However, the share price rose further, and at midday stood in excess of the firm's latest offer at 348 pence.
 
Deutsche Bank is advising British Vita on the offer. Rothschild is advising Texas Pacific.
 
British Vita manufactures products including furniture, nappies and military aircraft. Last autumn it announced that it was pursuing a strategy of growth through bolt-on acquisitions. In December it acquired US-based polyurethane producer Tyrfil for £14.7 million.
 
However, in its last trading update in December the company said that rising raw materials costs were affecting profit margins.