The Carlyle Group to acquire Blyth for $98 million
Staff writer ▼ | September 1, 2015
The Carlyle Group and Blyth have entered into a definitive agreement under which The Carlyle Group will acquire all of Blyth's outstanding shares of common stock in a transaction valuing Blyth at $98 million.Article continues below
This is equating to $6 per share, which represents a premium of approximately 105 percent over the closing price of Blyth common stock on Friday, August 28, 2015 and a premium of 65 percent over Blyth's 30-day average share price as of such date.
The transaction has been unanimously approved by Blyth's board of directors and will be completed by means of a tender offer followed by a merger.
Under the terms of the definitive agreement, an affiliate of The Carlyle Group will commence a tender offer for all of Blyth's outstanding shares of common stock at $6.00 per share in cash.
The tender offer is conditioned on Blyth's stockholders tendering at least a majority of Blyth's outstanding shares in the tender offer, early termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
The acquisition is expected to close in the fourth quarter of 2015. The financing for the transaction will come from Carlyle Equity Opportunity Fund, a $1.1 billion U.S. middle-market buyout fund.
Robert B. Goergen, Blyth's chairman of the board, and Robert B. Goergen, Jr., Blyth's president and chief executive officer, who beneficially own approximately 38% of Blyth's outstanding shares of common stock, have committed to support the tender offer.
The Goergen family has controlled Blyth for nearly 40 years. The company, based in Greenwich, Connecticut, includes PartyLite and Silver Star Brands.
PartyLite products, available in 23 countries, include candles, candle holders, flameless fragrance and wax warmers, as well as holiday and home décor. Silver Star Brands is a direct marketer of consumer gifts and household products. ■ What to read next
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