Funeral home company InvoCare (ASX:IVC) has announced its Australian subsidiary InvoCare Australia has offered an all-cash takeover bid for cremation, burial and memorial services company Norwood Park.
InvoCare Australia is offering $65.29 in cash per ordinary share, 10 per cent more than the $59.35 price offered by Propel Funeral Partners (ASX:PFP) last week.
The total cash payable by InvoCare Australia is just over $15 million if all shares in Norwood are acquired.
The ACCC intends to conduct a public informal merger review in relation to the proposed acquisition due to competition with other funeral directors in the Canberra and Ipswich areas.
InvoCare CEO Martin Earp said the Norwood business fits well with InvoCare’s geographic in-fill and new market objectives under the five year “Protect and Grow” plan which the company started to roll out last year.
Norwood Park generates $4.8 million a year in revenue with over 2,000 services a year.
Shares in InvoCare (ASX:IVC) closed 0.5 per cent higher yesterday at $15.85.