3i offers £137m for baby and household products

The global private equity firm has had a 500 pence per ordinary share offer accepted by the board of Mayborn, owners of the Tommee Tippee baby products and Dylon household dyes brands.

London-listed private equity firm 3i has reached agreement with the board of Mayborn, a UK baby care and household products group, on the terms of its 500 pence per ordinary share offer the business.
The offer, made through acquisition vehicle Jake Acquisitions, gives Mayborn an enterprise value of £137 million (€200 million; $255 million).
Senior and mezzanine facilities for the transaction were provided by Barclays Leveraged Finance.
The offer represents a premium of 13.1 percent to the closing price of 435.5 pence per ordinary share on 30 March 2006, the last business day prior to the commencement of the offer period; and 19.9 percent to the average closing price of 427.8 pence over the twelve months prior to 30 March 2006.
Mayborn was founded in 1946 with the development of Dylon, a domestic fabric dyes business. The company acquired Jackel, owner of the Tommee Tippee baby care and baby products brand, in 1983. According to 3i, the baby products unit accounts for 82 percent of group EBITDA, while household products represent the remainder.
Mayborn floated on the London Stock Exchange in 1986 before transferring to AIM in 2003. The business has operations in the UK and the Far East and reported revenue for the year to 31 December 2005 of £87.2 million and net assets of £14.6 million. As part of the transaction, Tube Plastics, a subsidiary of Mayborn, will be demerged.
Earlier this week, London-based investor Charterhouse Capital Partners sold its investment in baby products business Avent to Dutch consumer electronics group Philips in a £460 million transaction. Charterhouse acquired Avent last year from 3i and founders Edward and Cella Atkin for £300 million last year.