Vita Group attracts early interest from ICG and Lone Star

Information memorandums have been distributed for the UK manufacturer of polyurethane foam, two sources said.

Owner SVP Global, which is guided by Goldman Sachs in the auction, is expecting valuations of more than GBP 1bn for the asset, as previously reported by Mergermarket. The Manchester-headquartered company is being marketed based on EUR 140m in EBITDA.

Vita generated around EUR 40m in EBITDA and sales of EUR 704m when it was acquired by SVP from TPG Capital in 2018. Vita is expected to turn over around EUR 900m by the end of this year, according to a press report.

The company has grown quickly with good applications for its product across the furniture, automotive and flooring sectors, one source said.

Part of its growth was driven by a series of bolt-on acquisitions, especially over the past few months, namely Usleep, IMPE and flexible foam producer Technical Foam Services.

Vita Group is one of the last major European manufacturers in its niche and is investing more to address ESG sustainability issues, such as the use of more sustainable raw materials and working towards zero waste manufacturing, as previously reported. But bidders are asking for more detail on the equity story of the business, with concerns that it does not operate in a particularly attractive segment nor in the fastest growing one, as reported.

SVP and Vita declined to comment. ICG and Lone Star did not reply to requests for comments.

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• Topics
• Buyouts
• UK / Ireland
• Industrials
• Intermediate Capital Group
• Lone Star Funds