"We look forward to our new partnership with CD&R and the continued support of The Sterling Group as we continue to seek growth opportunities to better serve our customers." "We are excited about the opportunities this will bring to our employees, customers, and suppliers," said Mitch Williams, Chief Executive Officer of CSG. "We are enthusiastic about the opportunity to join forces with the many talented associates and leaders at CSG to enhance our collective ability to serve our customers. Following this transaction, we will be very well positioned to pursue both organic and inorganic growth opportunities aligned with our strategic priorities." "This transformational combination simultaneously increases our product and service offering, capabilities, and diversification and establishes our business as a focused, independent company," said John Stegeman. CD&R Operating Partner Phil Knisely, former executive vice president and corporate officer of Danaher Corporation, will serve as Chairman of the combined company. John Stegeman, White Cap's current CEO, and Alan Sollenberger, White Cap's current President, are expected to lead the new combined business, which will include the White Cap, Home Improvement Solutions and Brafasco businesses, as well as CSG. We are excited to work alongside both teams to capitalize on the many promising value creation opportunities we believe this strategic combination offers." "Over the past several years, the CSG team has built a strong new leader in the industry. "We developed strong confidence in the White Cap management team during our prior ownership of HD Supply, as they successfully managed through the global financial crisis," said Nate Sleeper, CD&R's Chief Executive Officer. With 130 branches and approximately 2,000 employees, CSG has a highly complementary footprint to White Cap in terms of product offering and geography, offering more than 60,000 SKUs to 65,000 customers. White Cap operates 270 branches with approximately 5,500 employees and offers more than 400,000 SKUs to 200,000 customers. The combination is intended to create a leading North American distributor of a diverse mix of concrete accessories and specialty construction and safety products with more than $4 billion in annual revenue. The combined transaction, valued at approximately $4 billion, is subject to customary regulatory approvals. Upon the closing of both transactions, CD&R funds will hold a 65% ownership interest in the combined company, and the current shareholders of CSG, led by The Sterling Group, will hold a 35% interest. (NASDAQ: HDS) under which CD&R funds will lead an investment to acquire HD Supply's Construction & Industrial business (also known as "White Cap"), a leading distributor of specialty concrete and construction products, and combine it with the Construction Supply Group ("CSG"), a leading distributor of specialty concrete and masonry accessories. 11, 2020 /PRNewswire/ - Clayton, Dubilier & Rice today announced an agreement with HD Supply Holdings, Inc.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |