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[August 2007]
American Standard's Bath and Kitchen Business Sold to Bain Capital
American Standard Companies Inc (Piscataway, NJ, USA) has signed a definitive agreement to sell its world-wide Bath and Kitchen products business to funds advised by Bain Capital Partners LLC, a leading global private investment firm, for US$1.755 billion in cash.Upon completion of the sale, Bain Capital will acquire all of American Standard's Bath and Kitchen business which had 2006 annual sales of US$2.4 billion, 26,000 employees and 54 production facilities in 23 countries. The business manufactures and markets industry leading products under brand names such as American Standard®, Ideal Standard®, Armitage Shanks®, Porcher®, Jado®, Ceramica Dolomite® and Vidima®. The sale closing is expected to occur early in the fourth quarter.
Following this sale and the spin-off of Vehicle Control Systems, American Standard Companies will change its name to Trane. Trane is the flagship brand of its global Air Conditioning Systems and Services business, which last year generated sales of US$6.8 billion. Trane will retain the American Standard brand name for its heating, ventilating and air conditioning (HVAC) and related products, while the newly formed Bath and Kitchen business will retain the name for its markets.
"This is a major milestone in our plan to separate American Standard into three focused, better understood companies," said Fred Poses, American Standard Chairman and CEO. "We believe that Bain Capital's all-cash offer provides excellent value for our shareowners. Bath and Kitchen is a global market leader, with size, global reach and organizational talent. It has a rich history and a great future for its customers, employees and new owners."
"This is a market-leading global company with a wonderful heritage, a strong portfolio of brands, deep customer relationships and an experienced management team," said Steve Barnes, a Managing Director at Bain Capital based in Boston, MA, USA.
"We look forward to supporting the management team and dedicated employees in realizing the company's full potential through continued operational improvements, further enhancing and leveraging its strong family of brands, and accelerating growth," added Walid Sarkis, a London-based Managing Director at Bain Capital.
Bain Capital is a global private investment firm that manages several pools of capital including private equity, high-yield assets, mezzanine capital and public equity with approximately US$50 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 240 companies around the world, including such leading companies as Dunkin' Brands, Sealy, Toys 'R' Us, Michaels Stores, Burger King, SigmaKalon, Bombardier Recreational Products, Samsonite, Sensata Technologies and Staples.
www.americanstandard.com
www.baincapital.com
ENDS