Wilsonart Majority Stake To Be Bought from ITW

Clayton, Dubilier & Rice (CD&R) and Illinois Tool Works Inc. (ITW) have formed an agreement under which ITW’s Decorative Surfaces business will become a new, independent company operating as Wilsonart International Holdings, LLC. A fund managed by CD&R will invest $395 million in the new freestanding business to acquire a majority ownership stake. ITW will retain an ongoing ownership stake. Wilsonart’s business units manufacture and distribute high pressure laminates and other surfacing materials and components with 2011 revenue of $1.1 billion. The company operates under the Wilsonart, Resopal, Polyrey and Arborite brands. aul Pressler, a CD&R Operating Partner, assumes the role of interim chief executive officer of Wilsonart upon the close of the transaction, expected in the fourth quarter. CD&R’s record of creating independent businesses from former divisions of larger corporations includes, most recently, Hussmann International, formerly a division of Ingersoll Rand, and Atkore International, formerly Tyco International’s Electrical and Metal Products business. CD&R has obtained committed financing from Barclays, Citigroup Global Markets Inc., Credit Suisse, Deutsche Bank, Goldman Sachs BankUSA, Morgan Stanley, and UBS Investment Bank.