Expanding its mid-market presence, investment firm Carlyle Group has agreed to take Blyth Inc. private in a deal valuing the candle and home fragrance maker at $98 million.
Blyth’s brands include PartyLite, Miles Kimball, Walter Drake, Easy Comforts, and Native Remedies. Carlyle has offered to pay $6 a share for the company, a 105% premium to Friday’s closing price.
In trading Monday, the stock had more than doubled, to $5.95.
“Blyth is a pioneer in home fragrance with well established brands and extreme customer loyalty,” Carlyle Managing Director David Stonehill said in a news release. “We expect Carlyle’s deep experience in global consumer businesses will help drive Blyth’s product innovation and growth goals.”
Carlyle is funding the transaction through its $1.1 billion Carlyle Equity Opportunity middle-market buyout fund, Mergers & Acquisitions reports. Its other mid-market investments include automotive repair center Service King, IT company ECI Software Solutions, and sports travel and events provider PrimeSport.
The Goergen family has controlled Blyth for nearly 40 years. Chairman Robert Goergen and CEO Robert Goergen, Jr. — who together own about 38% of the company’s outstanding shares — have committed to support the tender offer.
Blyth’s direct-to-consumer manufacturer’s products under the PartyLite brand include candles, candle holders, flameless fragrance and wax warmers, as well as holiday and home décor, and are available in 23 countries. Its Silver Star brand is a direct marketer of consumer gifts and household products.
“We are particularly impressed with PartyLite’s network of 40,000 independent consultants who have remarkable passion for the company’s products,” Stonehill said.