Wednesday, before the bell, private investment firm Sun Capital Partners, Inc. said its affiliate has inked an agreement, pursuant to which it will have controlling interest in the Global Bath and Kitchen business of American Standard Americas. The company has not disclosed its acquisition terms and financial details.
American Standard Americas is a company recently formed by Bain Capital Partners through its acquisition of the Global Bath and Kitchen business of American Standard Companies, Inc. (ASD). The company's products are marketed under brand names like American Standard, Porcher, and Jado.
The company noted that Bain Capital would retain a minority interest in American Standard Americas, while remaining the majority owner of the American Standard International business, which will have no Sun Capital affiliate as an investor.
Commenting on the sale, Donald Devine, president and chief executive officer of American Standard Americas said, "We are pleased to have the financial and operating support of an affiliate of Sun Capital Partners and Bain Capital. Our new independent structure as American Standard Americas enables us to continue our focus on making American Standard the leading bath and plumbing company in North America."
Commenting on the acquisition, Jason Leach, principal, Sun Capital said, "Sun Capital has significant industry knowledge and operating experience in the plumbing fixtures sector given the previous acquisitions of Crane Plumbing LLC and Eljer, Inc. by other Sun Capital affiliates, both of which are leading manufacturers and distributors of plumbing fixtures and specialty plumbing products for the residential and commercial construction, remodeling, and repair markets in North America."
In June, American Standard Cos. sold off its worldwide Bath and Kitchen products business to Bain Capital Partners, LLC, a global private investment firm, for $1.755 billion in cash. Pursuant to the sale Bain Capital formed a company named American Standard Americas to handle the newly acquired company and its products.
In March, American Standard Cos. sold its Venesta Washroom Systems for $165 million, which was part of its Bath and Kitchen business. Combined with Venesta, the sale of Bath and Kitchen business as of June totaled $1.92 billion.
American Standard Cos. had earlier in February 2007 announced its intention to reorganize its business by disposing off Bath and Kitchen business. Other measures include the spinning off Vehicle Control Systems as an independent publicly traded company to be known as WABCO. Air Conditioning Systems and Services, its largest business segment, was to be retained, as per the plan.
In Wednesday's regular trading session, ASD is trading at $32.93, down $0.45 or 1.35% on a volume of 0.11 million shares.
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