DX Group, a UK-based delivery company, has received a non-binding and conditional proposal of £293 million from HIG European Capital Partners, a private equity firm based in Miami.
The proposal is at a value of 48.5p per share and is subject to a number of pre-conditions, including satisfactory due diligence. HIG has until October 9 to make a firm offer or back away from the potential deal.
DX Group’s board has already rejected a series of prior proposals from HIG to acquire the company.
However, the board is prepared to recommend this proposal should HIG decide to make it a firm offer. The proposal is at a value that the board would be minded to recommend to DX shareholders.
DX Group was established in 1975 and was part of recruitment group Hays in the 1990s until it was disposed of by the business in 2004.
The company has sites across the UK and a few in Ireland, and specialises in next-day or scheduled delivery of high value and important items for businesses.
HIG European Capital Partners is a private equity firm that owns dozens of companies across the world, including Interpath Advisory, the former restructuring business of KPMG, which was sold by the consultancy in 2021.
Following the news of the proposal, DX Group’s shares soared to as high as 45p, although they were still some way below the potential offer price.
DX Group’s board has carefully evaluated the proposal with its financial advisers and concluded that the proposal is at a value that the board would be minded to recommend to DX shareholders. The company has allowed HIG to do due diligence on DX, and if the private equity firm decides to make a firm offer, the board is prepared to recommend the proposal to shareholders.
