Huntsworth board accepts £524m offer from CD&R

The offer values the current issued share capital of Huntsworth at approximately £400m and represents a premium of approximately 50% on the unaffected share price of 72 pence. The offer also implies an entry multiple of 10.8x adjusted EBITDA of £48.4m.

CD&R will draw equity from its Fund X, which closed on $10bn in April 2017. The acquisition will also be financed with a term loan facility of $295m and a revolving credit facility of £35m provided by Royal Bank of Canada.

The firm has received both irrevocable commitments and letters of intent to vote in favour of the offer from shareholders including Merian Global Investors, Hargreave Hale, Aberforth Partners, Kabouter Management and Kames Capital, which, in aggregate, hold 36.7% of shares in the company.

Huntsworth listed on the London Stock Exchange in 1986. The company is a London-headquartered healthcare communications and public relations group that posted operating profit of £31.1m from revenue of £224.95m in 2018.

Huntsworth shares were trading at 109.5 pence at the time of publication.

BofA Securities, Houlihan Lokey and RBC Capital Markets are providing CD&R with corporate finance advice and Rothschild & Co is advising Huntsworth. Clifford Chance is acting as legal adviser to CD&R, while Pinsent Masons is acting as legal adviser to Huntsworth.

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