Private equity firms circling for Vita

OLHAM-based chemicals firm Vita is set to be sold following a disastrous buy-out by American private equity fund TPG.

According to reports in The Sunday Times, the specialist in foam fillings for bedding, car parts, furniture and nappies is on the radar of Miami company HIG Capital and turnaround fund Rutland Partners, which owns the Bernard Matthews turkey company.

Vita, founded in 1949, was delisted from the London Stock Exchange 10 years ago as a result of a failed £700m takeover.

The firm’s most up-to-date accounts show revenue of nearly £30m and pre-tax profits of £21.2m.

The company, then known as British Vita, was bought by TPG in 2005 following three unsuccessful takeover gids, finally succumbing to a 360p-a-share bid worth £688m.

But it soon ran into trouble as the financial crisis took hold. Vita almost folded in 2009 after struggling with debts of £450m.