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DJ Home-Decor Company Blyth Rejects Takeover Offer from CVSL

Nov 15, 2013 08:24:00 (ET)



By Ben Fox Rubin
Candle maker Blyth Inc.'s (BTH) board unanimously rejected a roughly $270 million takeover proposal from direct-selling company CVSL Inc. (CVSL), saying the offer wasn't supported by any committed debt or equity financing.

CVSL recently offered $16.75 in cash or stock to acquire Blyth, which also designs and markets home accessories and health and wellness products.

Among concerns Blyth cited in rejecting the deal it said CVSL's advisers indicated to Blyth that there was no capacity to raise additional debt at CVSL. Therefore, any debt raised to finance the cash portion of the deal would be raised based solely on Blyth's leverage capacity.

Blyth also said the deal would require its cash and cash equivalents be used to repay its own existing debt and didn't address the ongoing working capital needs of its domestic and international businesses.

A CVSL representative wasn't immediately available for comment.

Blyth shares closed Thursday at $12.50 and CVSL shares closed at 60 cents. Neither was active premarket.

Write to Ben Fox Rubin at [e-mail]

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(END) Dow Jones Newswires

November 15, 2013 08:24 ET (13:24 GMT)

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