Are Blyth Shareholders Getting Enough?

By Chris Lange Updated Apr 27, 4:30PM EDT · Published Aug 31, 3:03PM EDT

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The Carlyle Group LP (NASDAQ: CG) announced Monday a definitive agreement with Blyth, Inc. (NYSE: BTH) to acquire all of its outstanding shares at a valuation of $6.00 per share. This values Blyth at $98 million. Comparatively this is a 105% premium based on Friday’s closing price and a 65% premium over the past 30-day average share price.

The transaction has been unanimously approved by Blyth’s board of directors and will be completed by means of a tender offer followed by a merger. Threadstone Advisors, White & Case and PricewaterhouseCoopers are acting as advisors to Carlyle. Houlihan Lokey and Wachtell, Lipton, Rosen & Katz are acting as advisors to Blyth.

Under the terms of the definitive agreement, an affiliate of The Carlyle Group will commence a tender offer for all of Blyth’s outstanding shares of common stock at $6.00 per share in cash. The financing for the transaction will come from Carlyle Equity Opportunity Fund, a $1.1 billion U.S. middle-market buyout fund.

Carlyle Managing Director David Stonehill commented on the acquisition:

Blyth is a pioneer in home fragrance with well established brands and extreme customer loyalty. We expect Carlyle’s deep experience in global consumer businesses will help drive Blyth’s product innovation and growth goals. We are particularly impressed with PartyLite’s network of 40,000 independent consultants who have remarkable passion for the company’s products. We are excited to support their efforts as we grow the company together.

Blyth CEO Robert B. Goergen, Jr. said:

This is an important day in Blyth’s 40-year history. Carlyle understands what our team has accomplished and supports our vision for the future. Building on our strong consumer relationships, Carlyle, with its proven track record of growing companies, is the right partner to take PartyLite and Silver Star Brands to the next level of creativity and global growth.

Shares of Blyth were up over 100% at $5.95 on Monday afternoon. The stock has a consensus analyst price target of $40.00 and a 52-week trading range of $2.72 to $10.37.

Carlyle shares were down 2.3% at $21.39 on its 52-week trading range of $19.71 to $33.63. The stock has a consensus analyst price target of $30.81.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.