Bain Capital Private Equity has made a non-binding $1.83 billion offer for vehicle parts supplier Bapcor (ASX: BAP) following the company's shares sliding  around 27%  from their their price in early May.

Bapcor announced on 11 June it had received an un unsolicited indicative, conditional and non-binding proposal from the US-based buyout firm to acquire all the shares in the company by way of a scheme of arrangement at $5.40 cash per share.

Bapcor said its board had yet to fully assess the offer which was received after the ASX closed on Friday, 7 June. The proposal was subject to usual conditions including satisfactory conclusion of due diligence and unanimous commitment of directors to vote in favour, in the absence of a superior offer and subject to a favourable independent expert report.   

The company noted that the proposal would require approval from the Foreign Investment Review Board (FIRB).

There was no certainly a binding offer would eventuate, Bapcor said.

Bapcor has appointed Macquarie Capital as financial adviser and Allens as legal adviser on the proposal.

Announcement of the proposal followed media speculation about possible bids for the company and sent the share price up 14% from $4.35 to $4.99.

Following the earlier slide in Bapcor’s share price, Super fund Hostplus increased its stake in the company to more than 5% on 27 May.

On 31 May super fund Australian Retirement Trust (ART) and Perpetual Limited (ASX: PPT) lifted their stakes respectively to more than 7% and more than 5%. Tanarra Capital has also recently built a more than 6% stake in the company.

Bapcor was founded as Burson Auto Parts in 1971. Burson was acquired by Quadrant Private Equity in 2011 and successfully listed on the ASX in 2014 with shares in its IPO issued at $1.82.

Bapcor has recently downgraded profit projections on three occasions, the most recent in May sending the company’s shares down 35% in a day.

Bapcor brands include Burson Auto Parts, autObarn, autopro, Midas, Truckline and Wano. 

Image: Bapcor retails car parts and accessories through a chain of Burson Auto Parts stores.