JohnsonDiversey, a US-based company in cleaning and hygiene space with a significant India presence, has closed a $2.6-billion private equity deal with Clayton Dubilier & Rice (CD&R). CD&R will initially invest $477 million for a 46% equity stake in the company.
Post this transaction, the Johnson Family will hold 50% stake in the company, while Unilever will hold 4%. In addition to the CD&R fund investment, the transaction contemplates a debt financing package of approximately $1.9 billion to the company. JohnsonDiversey expects the debt financing and customary regulatory approvals will be closed by the end of the year.
JohnsonDiversey offers services to commercial customers in the building, retail, healthcare and food and beverage sectors, as well as large public sector clients such as the National Health Service in the UK and the State of New York. Some of its private sector clients include The Coca-Cola Company, PepsiCo, pharmaceutical retailer Walgreens and global facilities services provider ISS. In India, the company operates under Johnsondiversey India Pvt Ltd with head office in Mumbai. It has annual sales of over $3 billion. The company is also working on rebranding its corporate identity and will rename it as Diversey, Inc. in near term.
In the transaction, Goldman Sachs & Co. and Citigroup Global Markets Inc. served as financial advisors to the JohnsonDiversey, while Barclays Capital Inc., HSBC Securities (USA) Inc., Natixis, Rabobank Securities, Inc. and RBC Capital Markets served CD&R.
CD&R has so far invested over $12 billion in 43 US and European businesses, with an aggregate transaction value of approximately $70 billion, the release adds.