Persistence by U.S. private equity firm Texas Pacific Group has paid off in its bid to take over plastics sheet, compounding and foam products producer British Vita plc.
After three rejected bids over two months, San Francisco-based TPG finally won acceptance from Vita's board of directors with an offer of £668 million ($1.2 billion).
Directors at the publicly held, Manchester, England-based company said TPG's latest offer ``fairly valued'' the company. Vita has 110 manufacturing plants in 22 countries and employs 8,000. It reported 2004 pre-tax profit of £49 million ($95 million) on sales of £959 million ($1.8 billion).
Vita officials recently promised major restructuring, cutting or selling noncore and poorly performing units over 18 months, and new investment in China, Russia and Eastern Europe.
``TPG UK will take control of a well-run, cash-generative business which is well-placed to take advantage of opportunities offered by the markets it serves,'' said Vita Chairman David Cotterill, who dismissed TPG's earlier offers as ``opportunistic.''
Local news reports predicted that TPG would install Howard Harris as Vita's chief executive, replacing David Campbell.