Clayton, Dubilier & Rice Announces Agreement to Sell VWR International to Madison Dearborn
May 02, 2007
Clayton, Dubilier & Rice, Inc. (“CD&R”), a leading global private equity firm, today announced a definitive agreement with Madison Dearborn Partners in which Madison Dearborn Partners will acquire CD&R’s portfolio company, VWR International, Inc. (“VWR” or “the Company”). Terms of the transaction were not disclosed.
The transaction follows a period of significant growth and profitability for VWR, driven by strategic initiatives undertaken by CD&R to strengthen VWR’s market-leading position in the $27 billion global laboratory supply industry. With 2006 revenue of over $3.2 billion, VWR is the second largest distributor in the industry and has a global base of customers in pharmaceuticals, biotechnology, education and general industrial companies.
Over the past three years, the company has grown its core business organically and through acquisitions, expanding its geographic footprint in several attractive markets. Under CD&R’s ownership, VWR achieved more than a 60% increase in EBITDA.
Richard J. Schnall and George K. Jaquette of CD&R served as directors of VWR, and CD&R operating partner Charles A. Banks served as chairman.
“VWR was a classic CD&R investment, involving the complex divestiture of a non-core distribution business,” said Mr. Schnall. “We saw a solid platform for future growth, as VWR was the only large, pure play distributor in a very fragmented industry. Along with the competitive edge provided by VWR’s global footprint and strong, stable free cash flow generation, we were able to capture numerous profitability improvement opportunities.”
“We added value in a number of areas,” said Mr. Jaquette. “We infused new talent into the organization and built several key corporate functions, brought a disciplined focus on cash flow, executed significant operational restructurings in the U.S. and Europe, and pursued a number of strategic growth initiatives.”
“This transaction is clear recognition of our achievements over the past three years,” said VWR President and Chief Executive Officer, John M. Ballbach. “Together with the team from CD&R, we have made VWR the market leader it is today and we look forward to continuing our momentum.”
CD&R acquired VWR from Merck KGaA in April of 2004 for $1.65 billion, with an equity investment of $420 million.
The transaction is expected to close in the third quarter of 2007, subject to customary closing conditions.
Debevoise & Plimpton LLP acted as legal counsel to CD&R.
About VWR International, Inc.
VWR International is a leader in the global research laboratory industry with worldwide sales in excess of $3 billion US dollars. VWR’s business is highly diversified across products and services, geographic regions and customer segments. The Company offers products from a wide range of manufacturers, to a large number of customers primarily in North America, Europe and other locations. VWR’s principal customers are major pharmaceutical, biotechnology, chemical, technology, clinical, food processing and consumer product companies, universities and research institutes, governmental agencies, environmental testing organizations, and primary and secondary schools. VWR distributes a diversified product mix, including chemicals, glassware and plasticware, equipment and instruments, furniture, protective apparel, production and safety products, and other life science and laboratory products and supplies. VWR supports its customers by providing storeroom management, product procurement, supply chain systems integration, technical services and laboratory bench top delivery. VWR maintains operations in over 20 countries and employs over 6,000 people worldwide. VWR International is headquartered in West Chester, Pennsylvania. For more information on VWR International, visitwww.vwr.com.