Clayton, Dubilier & Rice’s Exclusive Discussions to Acquire a 40% Ownership Interest Stake in Belron

Debevoise & Plimpton LLP is advising Clayton, Dubilier & Rice on the deal

D’Ieteren and Clayton, Dubilier & Rice (“CD&R”), a global private investment firm, today announced that they have entered into exclusive discussions under which CD&R-managed funds would acquire a 40% ownership interest in the Belron group, the global leader in the vehicle glass repair and replacement (“VGRR”) market. Under the proposed agreement, D’Ieteren and management would retain the remaining 60% ownership interest in the company. The proposed transaction would value Belron at EUR 3 billion (enterprise value) which, after deduction of debt-like items (including a dividend payment of EUR 453 million), translates into an equity value of about EUR 1,550 million. The proposed transaction is subject to an information and consultation process with Belron’s French workers council, as well as the approval of the relevant regulatory and competition authorities.

With 2016 sales of EUR 3.3 billion, Belron is the sole global operator in the VGRR market, serving more than 11 million customers annually across 34 countries and five continents. The company holds the number one position in each of its top ten countries, including the US, France and Germany. Belron’s portfolio of well-recognized brands includes Carglass®, Safelite® and Autoglass®. The company employs approximately 26,000 associates worldwide.

Founded in 1978, CD&R is a private investment firm. Since inception, CD&R has managed the investment of more than $24 billion in 75 companies representing a broad range of industries with an aggregate transaction value of more than $100 billion.

The Debevoise team advising CD&R is led by partner E. Raman Bet-Mansour (Picture). It includes partner David Innes, international counsel Andrew C. Rearick, and associates Dominic Blaxill and Dexter Hoffman. Tax advice is being provided by partners Matthew D. Saronson and Richard Ward, and international counsel Cécile Beurrier. Competition advice is being provided by international counsel Timothy McIver. Finance advice is being provided by partner Alan J. Davies and associate Michelle Gilmore.

 

Involved fees earner: Raman Bet-Mansour – Debevoise & Plimpton; David Innes – Debevoise & Plimpton; Andrew Rearick – Debevoise & Plimpton; Dominic Blaxill – Debevoise & Plimpton; Dexter Hoffman – Debevoise & Plimpton; Matthew Saronson – Debevoise & Plimpton; Richard Ward – Debevoise & Plimpton; Cécile Beurrier – Debevoise & Plimpton; Timothy McIver – Debevoise & Plimpton; Alan Davies – Debevoise & Plimpton; Michelle Gilmore – Debevoise & Plimpton;

Law Firms: Debevoise & Plimpton;

Clients: Clayton Dubilier & Rice;

 

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