Clayton, Dubilier & Rice (CD&R) has agreed to acquire personal care platform High Ridge Brands for about $415 million, the firm said.
High Ridge Brands focuses on buying orphaned personal care brands, and consists of nine consumer brands, including Zest, Alberto VO5, White Rain, Coast and Rave.
“The business is highly scalable and will serve as a platform through which to further consolidate the highly fragmented personal care products space,” CD&R partner Ken Giuriceo said.
High Ridge Brands chief executive James Daniels added that CD&R’s experience with corporate carve-outs, consumer products knowledge and operational skills will contribute to the scaling of High Ridge Brands.
CD&R operating partners John Compton, a former PepsiCo president, and Vindi Banga, a former Unilever president of foods, home and personal care, will join High Ridge Brands’ board of directors as part of the transaction.
The deal is expected to close next month.
BMO Harris Bank, HSBC Bank USA, ING Capital, Natixis, Bank of Ireland, Jefferies Finance and Société Générale have committed to providing debt financing for the deal. CD&R received legal advising from Debevoise & Plimpton and financial advising from BMO Capital Markets. High Ridge Brands received legal advice from Holland & Knight and financial advice from William Blair & Company.
CD&R has invested in consumer brands such as Hertz, Kinko’s and Lexmark.
In May 2014, CD&R held a final close for CD&R Fund IX on $6.43 billion, beating its $5 billion target, according to PEI Research & Analytics. Investors in the fund include AP Fonden 2, California State Teachers’ Retirement System, Teacher Retirement System of Texas, CNP Assurances, SVG Capital and The Denver Foundation, according to PEI data.