VWR to Be Sold to Private Equity Firm
Reuters reports that VWR is being acquired for between $3.5 billion and $4 billion, though these figures seem high. CD&R purchased VWR from Merck KGaA in 2004 for $1.68 billion (see IBO 2/15/04). The Financial Times reported that finalists in the auction included private equity firm Blackstone and that CD&R has earned $400 million from VWR through two refinancings. Among the opportunities for VWR under the new ownership cited in a letter to customers were further investments in service offerings and growth in Asia Pacific.
West Chester, PA 5/2/07—Clayton, Dubilier & Rice (CD&R) has agreed to sell VWR International to private equity investor Madison Dearborn Partners (see IBO 3/15/07). Terms of the deal were not disclosed. VWR is a distributor of laboratory products to research labs. VWR’s 2006 revenues rose 4% to more than $3.2 billion (see IBO 4/15/07). “Together with the team from CD&R, we have put together a very talented management team, restructured our operations to more efficiently serve customers, made significant debt repayments and launched our business in Asia,” stated VWR President and CEO John Ballbach. The transaction is expected to close in the third quarter.
