Spotless: No guarantee of private equity deal

Corporate cleaning company Spotless says there’s no guarantee of a deal with its private equity suitor, Pacific Equity Partners (PEP) despite ongoing talks.

PEP made a takeover bid for Spotless in November, and increased the value of the offer to around $711 million in December. Shares in Spotless almost doubled in November as a result of the move, despite Spotless indicating it was offer was about $32 million too low.

With PEP’s due diligence process now ended, talks between the parties were continuing, Spotless said in a statement to the ASX.

“Spotless and PEP have been in ongoing dialogue … to see whether a proposal could be put to Spotless shareholders which can be recommended by the Spotless board,” the company said.

“Shareholders should note that there is no certainty that any agreement between Spotless and PEP will be reached as a result of these ongoing discussions.”

PEP is a private equity company focusing on leveraged buyouts. Based in Sydney, it was established in 1998 by partners who originally worked together at US presidential candidate Mitt Romney’s global buyout firm, Bain & Company.

Spotless shares were up 1.25% to $2.43 at 11.20 AEST.