Clayton Dubilier & Rice has agreed to pay $306 million for a 51 percent stake in Tyco International’s electrical and metal products business Atkore International in a deal valued at approximately $1 billion. The transaction is expected to close in the next two months.
CD&R's acquisition includes debt financing from Credit Suisse, Deutsche Bank and UBS. The investment comes from the firm’s eighth buyout fund, which closed on $5 billion in December 2009. The fund is roughly one-third invested.
Atkore manufactures and distributes products including steel tubing, sprinkler pipe, pre-wired armored and metal clad electrical tubes and metal framing systems. The business generated revenue of $1.4 billion in fiscal 2010, and has 37 manufacturing and distribution facilities worldwide.
“We like businesses that have attractive spread of risk characteristics,” partner at CD&R Tom Franco told PEO. “Atkore serves over 50 different end markets in multiple geographies.”
Clayton Dubilier & Rice has made at least 10 deals for distribution businesses in its last 16 transactions. In September, the firm purchased a 42.5 percent stake in specialty chemical distributor Univar from CVC Capital Partners.