Clayton, Dubilier and Rice

Clayton, Dubilier & Rice is an American private equity company. It is one of the oldest private equity investment firms in the world. Founded in 1978, CD&R has managed the investment of more than $30 billion in approximately 90 businesses, representing a broad range of industries with an aggregate transaction value in excess of $140 billion. Approximately half of CD&R's investments have involved corporate divestitures.

CD&R had ownership stakes in, among others, B&M Retail, Envision Healthcare, The Hertz Corporation, Hussman International, Rexel (a distributor of electrical parts and equipment) and US Foods (a broadline foodservice distributor), Sally Beauty, Diversey, Inc., VWR International, Brake Bros, Kinko's (now FedEx Office, previously FedEx Kinko's), Uniroyal Goodrich Tire Company and Lexmark.

History

Clayton & Dubilier was founded as a turnaround management shop by Martin H. Dubilier, Eugene Clayton and Bill Welsh in 1976. Joseph L. Rice III, a deal professional, putting the firm into investment business, joined in 1978, and the firm became known as Clayton, Dubilier & Rice in 1992. Clayton and Welsh retired from the firm in 1985 and Dubilier died in 1991.

The firm executed a leveraged buyout in 1987 of Borg-Warner's Industrial Products Division, spinning the division off into a standalone company, BW/IP International. Between 1987 and 1992 the firm added nine new partners, five of which had previous experience as CEOs.

In 1988, the firm acquired Uniroyal Goodrich Tire Company and a 50% stake of B.F. Goodrich for $225 million.Uniroyal Goodrich Tire Co reports earnings for Qtr to Sept 30
New York Times Archive, Published: October 14, 1988
REUTERS, New York Times Archive, Published: June 24, 1988 In 1990, the firm sold Uniroyal Goodrich Tire Company to Michelin for $1.5 billion.INSIDE
New York Times, Published: September 23, 1989

In 1990, CD&R formed Lexmark from IBM's printer and keyboard manufacturing business. The deal was named one of the 30 Most Influential Private Equity Deals by ''Private Equity International'' in 2004.

In 1998, Don Gogel was appointed CEO. Also in 1998, CD&R established an office in London.

In 2001, Jack Welch, former CEO of General Electric, joined CD&R as a Senior Advisor.

In 2005, CD&R teamed with Merrill Lynch, The Carlyle Group and Barclays to acquire The Hertz Corporation from Ford Motor Company for $15 billion.

In 2011, CD&R and Ingersoll-Rand announced a partnership relating to Ingersoll's Hussmann division in which CD&R would acquire a 60 percent interest.

In 2012, Joe Rice stepped down as Chairman, succeeded by Don Gogel.

In March 2013, Clayton, Dubilier & Rice partnered with the family owners of B&M retail, acquiring a 60 percent stake. In October 2013, the firm acquired a 60% stake in John Deere Landscapes (now SiteOne Landscape Supply) in partnership with Deere & Co., which retained a 40 percent stake.

In 2015, CD&R signed an agreement to sell Hussmann to Panasonic for $1.5 billion.

Clayton Dubilier & Rice Fund X LP completed fundraising in 2017 with $10 billion of investor commitments.

Clayton, Dubilier & Rice acquired a 60% stake of Capco from FIS for $477 million in May 2017. In August 2017, the firm acquired the Waterworks division of HD Supply for 2.5 billion, and changed its name to Core & Main.

In January 2018, Clayton, Dubilier & Rice acquired Ply Gem Holdings, Inc. and Atrium Windows & Doors. In October 2018, the firm acquired a stake in SmileDirectClub after investing $380 million.

In 2018, CD&R and American Greetings, a provider of greeting cards, announced a partnership transaction in which CD&R would acquire a 60% stake from the family owners.

In January 2019, Clayton, Dubilier & Rice invested alongside the founder of WSH Investments Ltd., Alistair Storey, to take a major stake in the business.

In July 2019, Clayton, Dubilier & Rice were included on '' Inc.s 50 Best Private Equity Firms for Entrepreneurs list.

In September 2019, CD&R acquired a stake in Socotec in a deal valuing Socotec at $1.98 billion.

In August 2020, CD&R signed an agreement to buy Epicor from KKR for $ 4.7 billion.

In January 2021, CD&R agreed to purchase Wolseley UK, the largest supplier of plumbing and building materials in the U.K. from Ferguson plc for $308m.

In October 2021, CD&R purchased Morrisons UK.

In April 2022, it was announced CD&R had acquired a 60% interest in Humana Inc's hospice and personal care divisions ( Kindred at Home) for $2.8 billion USD.

In July 2022, CD&R completed its acquisition of Cornerstone Building Brands, purchasing the remaining common stock.

References

External links

Clayton, Dubilier, and Rice website

Interview
with Don Gogel (35 m.), ''Charlie Rose'', May 24, 2012. Regarding role of private equity in US economy and specifically President Obama's attacks on Republican challenger Mitt Romney's record at Bain Capital in the 2012 campaign.

{{DEFAULTSORT:Clayton, Dubilier and Rice
Private equity firms of the United States
American companies established in 1978
Financial services companies established in 1978
1978 establishments in New York City
Financial services companies based in New York City