Clayton, Dubilier & Rice to Acquire SunSource
SunSource is a Leader in the Fragmented North American Hydraulic and Pneumatic Fluid Power Distribution and Service & Repair Market
NEW YORK -- Clayton, Dubilier & Rice announced today an agreement under which CD&R-managed funds will acquire a majority stake in SunSource Holdings, Inc., a distributor of hydraulic and pneumatic fluid power products in the U.S. and Canada. Terms of the transaction were not disclosed.
SunSource serves a diverse customer base which includes more than 20,000 original equipment manufacturers and end users of hydraulic and pneumatic equipment. The company's broad product portfolio of pumps, motors, valves, cylinders and components for use in mobile hydraulics and electronics, industrial hydraulics and pneumatics, automation and fluid process equipment exceeds 200,000 SKUs. SunSource serves equipment manufacturers and users across a wide range of end markets, including construction, transportation, oil and gas, and others. The company also provides service and repair for the products it distributes as well as third-party products, drawing on in-house engineering capabilities and technical expertise.
"We have invested in many industrial distribution platforms over the years and we view SunSource as exceptionally well-positioned in terms of the value it adds it to its customers and supplier partners," said CD&R Partner Nate Sleeper. "We are excited to work with this management team given their deep experience in the industry. We look forward to helping the company accelerate future growth."
CD&R Partner J.L. Zrebiec added: "As a leader with differentiated capabilities in a highly fragmented market, SunSource is well-positioned to grow and further strengthen its position with customers who value its geographic reach, engineering and technical capabilities, deep product offerings and high levels of customer service."
"We see a lot of runway ahead for our business," said David Sacher, President and Chief Executive Officer of SunSource. "We've enjoyed much success and growth by building a team of extraordinary associates who relentlessly focus on delivering unique value and solutions to our customers and suppliers, and we look forward to working with the team at CD&R to accelerate these efforts and energize our organization."
CD&R has obtained committed financing from Barclays, Credit Suisse Securities (USA) LLC, and Deutsche Bank AG New York Branch. Debevoise & Plimpton LLP served as CD&R's legal advisor in the transaction.
About Clayton, Dubilier & Rice
Founded in 1978, Clayton, Dubilier & Rice is a private investment firm. Since inception, CD&R has managed the investment of $24 billion in 75 companies representing a broad range of industries with an aggregate transaction value of more than $100 billion. The Firm has offices in New York and London.
Headquartered in Addison, Illinois, SunSource is a value-added distributor of fluid power and motion control technologies in North America. As a technically-focused distributor, SunSource serves as an extension of its customers' design and engineering teams and its suppliers' sales forces, delivering innovative solutions that lower total costs and streamline supply chains. The Company operates through four highly focused strategic business units that provide tailored solutions for the unique needs of its Industrial, Mobile, Service & Repair and Process Solutions customers.