Clayton, Dubilier & Rice To Buy Ashland Water Technologies In $1.8 Bln Deal

(RTTNews) - Private investment firm Clayton, Dubilier & Rice said Tuesday that it reached an agreement with Ashland Inc. (ASH) by which a Clayton, Dubilier & Rice-managed fund will acquire Ashland Water Technologies, a global supplier of specialty chemicals for process, functional and water treatment applications. The carve-out transaction is valued at about $1.8 billion.

Ashland Water Technologies or AWT serves customers in the pulp, paper, power generation, mining, oil & gas refining, chemical processing, general industrial, food and beverage, institutional, commercial and municipal end markets.

With annual revenues of $1.7 billion, AWT offers chemical and equipment technologies and services designed to help customers improve operational efficiencies, enhance product quality, protect plant assets and minimize environmental impact. AWT operates a global footprint with 31 manufacturing facilities across 17 countries and 5 continents. The company's segments are Pulp & Paper (67% of 2013 sales) and Industrial Water (33% of 2013 sales).

Clayton, Dubilier & Rice stated that John Panichella will continue to lead the business as Chief Executive Officer. Panichella has more than 25 years of experience within global water markets.

Lewis Hay III, former Chairman, President and Chief Executive Officer of NextEra Energy, Inc. and a Clayton, Dubilier & Rice or CD&R Operating Advisor, will assume the role of Chairman upon the close of the transaction, expected by September 30, 2014.

CD&R said it has obtained committed financing from BofA Merrill Lynch, Credit Suisse, Goldman Sachs Bank USA, Macquarie Capital, Nomura Securities International Inc. and RBC Capital Markets.

"We are excited to be partnering with John Panichella and the AWT management team and look forward to working with them to move the business forward to its next level of profitable growth," said CD&R Partner David Wasserman.