Investment firm Castelnau Group Ltd on Thursday said its investee Dignity is to acquire London-based Farewill Ltd, boosting its end-of-life services offering.
Dignity will buy Farewell for £12.9 million. The deal will be financed through a share-for-share exchange, with the majority of Farewill shareholders becoming Castelnau shareholders.
Castelnau expects to issue around 9.6 million shares based on a price of 99 pence each.
In exchange, Castelnau will increase its holding in Valderrama Ltd, a joint-venture through which it owns its holding in former London listing Dignity.
‘Subject to the successful completion of the transaction, Castelnau will increase its ownership of Valderrama by 5.6 million shares to 199.9 million shares, representing 66% of Valderrama’s issued share capital,’ it said.
‘The acquisition will allow Dignity to broaden its audience, enhance customer experience, expand its product offering, modernise its technology infrastructure, and further strengthen its talent pool. Farewill also brings an established will and probate bank and a well-established brand, enabling Dignity to engage with potential customers earlier in their later-life planning journey.’
Castelnau Chief Executive Richard Brown said: ‘The addition of Farewill to Dignity’s offering embodies Castelnau’s strategic ambitions for Dignity.
‘Adding Farewill’s will and probate services to Dignity’s current offerings will expand Dignity’s touchpoints with customers throughout their entire `end-of-life’ journey. We are pleased the structuring of the transaction has also allowed us to increase our ownership in Dignity, a business where we continue to see a significant value-creation opportunity.’
Farewell Chief Executive Dan Garret added: ‘Joining forces with Dignity allows us to stay true to that mission while benefiting from the experience and resources of a company that has been a trusted name for generations. Farewill will continue to operate independently, with our own brand and focus, serving a growing audience that values the convenience and transparency of our services - alongside contributing to the group as we explore ways of improving every customers’ experience.’
Shares in Castelnau closed down 1.5% at 95.00p on Thursday afternoon in London.
Dignity delisted from the London Stock Exchange last year after Valderrama, part-owned by Castelnau, agreed to acquire the company.
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