Clayton Dubilier & Rice has agreed to sell cleaning products maker Diversey for $4.3 billion, generating a 2.7x return multiple, according to a source familiar with the deal.
Diversey, which provides cleaning, sanitation and hygiene solutions to industrial and retail customers, is being purchased by packaging and materials company Sealed Air. CD&R invested in Diversey in 2009. Under the firm’s ownership, Diversey’s EBITDA increased 22 percent.
Including the expected cash proceeds from Diversey, CD&R is anticipating returning more than $1.5 billion to limited partners in 2011.
The firm has remained active on the acquisition and exit front as of late. Last month, CD&R led a consortium of investors including AXA Private Equity to acquire mechanical engineering, energy and communication systems company SPIE for approximately $3 billion. In February, CD&R acquired healthcare Emergency Medical Services from Toronto-based Onex in a $3.2 billion take-private.
CD&R strengthened its Europe-focused deal team in London by hiring of Sonja Terraneo in March. Terraneo, a 15-year private equity veteran, is the former head of industrial sector investments for large-cap private equity firm Permira.