, fielded a bid from private equity giant TPG Capital in March and finally agreed to a deal five months later at a $2.2 billion enterprise valuation. That followed due diligence extensions, pre-AGM drama and a price cut.
Scheme documents for InvoCare put its Australian market share at 24.1 per cent, followed by Propel at 5.9 per cent. Propel has historically traded at higher multiples than its larger rival as investors rewarded it for an aggressive acquisition strategy and its funeral volume growth, while InvoCare lost points for operational troubles.
Propel has had Viburnum Funds sitting on its register since at least 2020; it trimmed its position in March but still holds a 7.6 per cent stake. The Perth-based fund may be the first port of call for a suitor looking to build a pre-bid stake. Just last year, it helped Propel arranged 18,029 funerals in the 2023 financial year at the average cost of $6,398 per funeral. That translated to a 16 per cent rise in revenue to $168.5 million, and 17.9 per cent increase in operating after-tax profit to $20.9 million. It had $46.9 cash and 1.7-times net leverage ratio.
It has 180 locations across Australia and New Zealand, including 37 cremation facilities and 9 cemeteries. It owns 107 locations and leases 73. Propel’s Australian brands include Ross Funerals, Quinn Funerals, Glenelg Funerals and Millingtons, while in New Zealand it owns Eagars Funerals and Davis Funeral Care.has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories.