TPG Capital has agreed to an offer to sell its equity position in Vita Group to Strategic Value Partners, which is also a current shareholder of the business, according to a source familiar with the matter.
Greenwich, Connecticut-based SVP is eyeing full control of the company, which makes foam products used in bedding and flooring, among other products. The distressed investing firm, which became a stockholder in May, plans to extend the same offer to all shareholders once regulatory approval for the possible TPG transaction, this person said.
Specific goals for SVP in taking sole ownership of Vita would be expanding its presence in Eastern Europe by boosting use of its foam products in the bedding and furniture markets along with increasing efficiency by investing in technology and automation. SVP also hopes to begin supplying ready-to-ship mattresses. Based on early figures, Vita posted around €704 million in sales and EBITDA of €40 million in 2017.
San Francisco- and Fort Worth, Texas-based TPG acquired Vita in 2005 for £668 million ($1.25 billion at the time), according to an industry news report at the time. The initial offer of £3.25 per share was a 40 percent premium, while the final offer of £3.60 per share was a price-to-earnings multiple of more than 19.
SVP specialises in distressed debt investments and manages $7.1 billion. In addition to its Connecticut headquarters, the firm has offices in London, Frankfurt and Tokyo. Victor Khosla founded the firm in 2001.