Clayton, Dubilier & Rice has signed an agreement to acquire David’s Bridal, a specialty retailer of bridal gowns and a portfolio company of Leonard Green & Partners which acquired the company in November 2006. Leonard Green will maintain a minority interest in the company. The transaction values the company at approximately $1.05 billion.
“The company’s strong brand awareness, exceptional service quality, deep product knowledge, and high performance levels are unmatched in the bridal customer segment and that is why we are so excited about the transaction,” said CD&R Partner Kenneth Giuriceo.
David’s Bridal designs, produces and sells bridal gown and wedding-related apparel and accessories through a network of over 300 US and 5 Canadian stores. It is the largest American bridal-store chain. The company is based in Conshohocken, PA (www.davidsbridal.com).
CD&R Operating Partner Paul Pressler, former CEO of the GAP and former senior Disney executive, will assume the role of Chairman at the close of the transaction, expected in the fourth quarter.
Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank, and Morgan Stanley have committed to providing debt financing for the transaction.
“David’s Bridal is a unique and well-positioned specialty retailer competing in a large and stable industry,” said Richard Schnall, a Partner at CD&R. “We look forward to working closely with the company to build on its market leadership and scale advantages to grow in new market segments, channels, and geographies.”
Clayton, Dubilier & Rice focuses on producing financial returns through building stronger more profitable businesses. Since inception, the firm has managed the investment of more than $18 billion in 52 US and European businesses representing a broad range of industries with an aggregate transaction value of approximately $80 billion. Founded in 1978, Clayton, Dubilier & Rice is based in New York, NY and London, UK (www.cdr-inc.com).
“The CD&R team has a reputation for operational excellence and we welcome their ownership as we accelerate our growth strategies for the company and continue our commitment to providing the highest levels of style, quality and value to our customers,” said Robert Huth, President and CEO of David’s Bridal. “We are also pleased that Leonard Green will continue to be an investor.”
© 2012 PEPD • Private Equity’s Leading News Magazine • 8-30-12