CD&R warms to refrigeration

The global private equity firm paid $195m in equity for a 60% stake in Hussmann International, a refrigeration systems and display company.

Clayton, Dubilier & Rice have acquired a 60 percent stake in Hussmann International, a manufacturer of refrigeration systems and displays, for $195 million in equity from Ingersoll Road. Ingersoll will retain a 40 percent equity interest in the company.

The deal is a carve-out of a non-core Ingersoll subsidiary, according to a source close to the acquisition. In 2010, Hussman posted $800 million in revenues providing refrigeration products to supermarkets, convenience stores, drug stores and food service establishments.

CD&R declined to comment.

Earlier this year, CD&R led a consortium of investors including AXA Private Equity to acquire French mechanical engineering, energy and communication systems company SPIE for approximately $3 billion. In February, the firm acquired healthcare Emergency Medical Services from Toronto-based Onex in a $3.2 billion take-private.

CD&R exited cleaning products maker Diversey for $4.3 billion in June, generating a 2.7x return multiple, according to a source familiar with the deal.

The global private equity firm is not the only one investing in refrigeration. In June, Avista Capital Partners made a similar acquisition when they purchased Anthony International, the leading producer of glass doors for commercial refrigeration, from Aurora Capital Group. Terms from that deal were not disclosed.

CD&R maintains offices in New York and London. The firm’s eighth fund raised $5 billion in 2008.