Culligan International Explores a Sale
May 27 2016 - 05:30PM
Dow Jones News
Water treatment company Culligan International is weighing a
sale that could value the business at about $900 million, according
to people familiar with the matter.
The Chicago-area company—known for its advertising featuring
homeowners intoning "Hey, Culligan Man!" for help with hard
water—is working with bankers at Citigroup Inc. to evaluate a
potential sale, the people said.
Culligan tapped bankers after fielding multiple approaches by
larger companies, one of the people said.
The company, founded in 1936 by Emmett J. Culligan in
Northbrook, Ill., sells home filtration systems, water softeners
and jugs of water for water coolers.
Private-equity firm Centerbridge Partners LP in 2012 struck a
deal to take control of the business from Clayton, Dubilier &
Rice LLC in an out-of-court restructuring after buying its debt at
a deep discount. CD&R had purchased Culligan from French waste
and water utility Veolia Environment SA for $610 million in
2004.
Centerbridge recruited Scott Clawson to serve as Culligan's
chief executive. Mr. Clawson previously led GSI Group Inc., an
agricultural equipment manufacturer Centerbridge sold to Agco Corp.
for $940 million in 2011.
Industrial M&A has been a bright spot in an otherwise
lackluster deal environment. The year kicked off with Johnson
Controls Inc. and Tyco International PLC agreeing to merge in a $14
billion tax inversion deal. In May, private-equity firm Apollo
Global Management LLC bought home-security alarm maker ADT Corp. in
a nearly $7 billion deal. Metering company Badger Meter Inc. is
exploring a potential sale, people familiar with the matter have
said.
ENDS
(END) Dow Jones Newswires
May 27, 2016 17:15 ET (21:15 GMT)
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