London and New York (ots/PRNewswire)
- Clayton, Dubilier & Rice,
Inc. (CD&R), in partnership with Eurazeo and Merrill Lynch Global
Private Equity (MLGPE), today announced a definitive share purchase
agreement to acquire Pinault Printemps Redoute's (PPR) 73.5% equity
interest in Rexel SA in a transaction valued at EUR3.7bn.
The agreement follows the announcement last week that exclusive
negotiations had been entered into between CD&R, Eurazeo and MLGPE,
and PPR to acquire PPR's equity stake at EUR38.50 per share, subject
to regulatory approval. Pursuant to French stock market regulations,
and following receipt of regulatory approvals, a mandatory offer will
be made to minority shareholders of Rexel in the first quarter of
2005 at the equivalent offer price.
Upon completion of the transaction CD&R operating partner
Roberto Quarta will serve as chairman of the company.
"Rexel is a global market leader in an attractive industry segment
and one in which our firm has had great success," said Mr. Quarta.
"We believe the company is well positioned for growth and will
benefit from our operating expertise, distribution industry
experience and transatlantic presence. We are also pleased to be
making this investment with Eurazeo and Merrill Lynch Global Private
Equity, both high quality institutions who share our vision for
transforming Rexel into an even better performing company," said Mr.
"We look forward to working with the talented Rexel management
team who we have come to know and respect over the past year as we
have evaluated this investment," said CD&R financial partner David A.
Bruno Deschamps, a CD&R operating partner also involved in the
transaction, said, "Rexel is truly a classic CD&R transaction that
fits well with our operations-focused strategy and emphasis on
building strong businesses."
CD&R earlier this year completed the US$1.65 billion acquisition
of West Chester, PA-based VWR International, a global distributor of
laboratory supplies, from Merck KGaA of Germany. In September the
firm also closed the US$650 million purchase of Chicago-based
Culligan International, a leading manufacturer and distributor of
water treatment products and bottled water, from Veolia
Environnement SA of France. CD&R recently successfully exited
investments in Kinko's, Jafra and SIRVA, and will see cumulative
distributions this year for CD&R Fund V and Fund VI in excess of
About Clayton, Dubilier & Rice
Clayton, Dubilier & Rice, Inc. (CD&R) is a leading private equity
investment firm that has earned consistent, superior investment
returns using an integrated operational and financial approach to
building and growing portfolio businesses. Since its founding in
1978, CD&R has managed the investment of over US$5 billion in 36
businesses - mostly subsidiaries or divisions of large multi-business
corporations - representing a broad range of industries with an
aggregate transaction value in excess of US$20 billion and revenues
of more than US$30 billion. The firm has offices in New York and
London. For more information about CD&R, visit www.cdr-inc.com
Rexel, a subsidiary of Pinault-Printemps-Redoute, is the world's
leading distributor of electrical equipment and supplies, with a
network of 1,700 sales outlets in 29 countries and 21,000 employees.
Rexel shares are listed on Euronext Paris (Code ISIN : FR0000125957).
Rexel has annual revenues of EUR6.7 billion and approximately 36% of
the company's sales are generated in North America, 28% in France,
27% in the rest of Europe, and 9% in the rest of the world.
ots Originaltext: Clayton, Dubilier & Rice, Inc
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