Bain Capital, Carlyle Announce Bid to Takeover Osram

July 7, 2019 | Private Equity

Bain Capital and Carlyle announce €3.4 billion bid for German light maker

Bain Capital and Carlyle Group announced a takeover offer for German lighting manufacturer Osram Licht AG. The bid is worth at €35 ($39.50) per share. The offer is worth €3.4 billion ($3.8 billion).

That offer represents a premium of about 21% to the target’s closing price last Tuesday.

The offer comes after months of deliberation. News of a possible takeover first made headlines in February. However, funds faced capital raising challenges due to increased concerns about the company’s future earnings expectations.

Osram, a spinoff from Seimens, had warned six consecutive quarters about its profitability outlooks due to cooling demand for lights and components, primarily in the automotive and telecom industries.

Osram’s management and supervisory boards have recommended the offer for acceptance, saying it is in the best interests of both the company and shareholders.

Valuation of Osram

At the offer price, the enterprise value of Osram is €4 billion, while the equity valuation is €3.4 billion.

Thursday, the bidders signed an investor agreement agreeing to Osram’s corporate strategy.

Meanwhile, the offer is contingent on a minimum acceptance of 70% of shares, excluding shares owned by Osram.

The deal is one of many recent buyouts that have energized the European private equity market.

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