cleaning products

Bain Buys Diversey from Sealed Air

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Sealed Air has entered into an agreement to sell its Diversey Care division and the food hygiene and cleaning business within its Food Care division to Bain Capital Private Equity for $3.2 billion.

The acquired company – temporarily called New Diversey – is a provider of cleaning and hygiene products to the institutional marketplace, serving lodging, food service, retail, health care, food and beverage companies, as well as building service contractors worldwide. The company was founded in Chicago in 1923 and was ultimately acquired in October 2011 by Sealed Air for $4.3 billion (9.5x 2010 adjusted EBITDA of $452 million).

Post-closing, New Diversey will employ approximately 8,600 people globally. Diversey Care and the related food hygiene businesses combined generated net sales of approximately $2.6 billion in 2016. The company is based near Milwaukee in in Racine, WI (click HERE for the Diversey website).

“Diversey has a long track record of leadership in the hygiene and cleaning solutions market on a global basis,” said Ken Hanau, a Managing Director at Bain Capital. “We are excited to partner with the talented team at Diversey to grow across key market verticals and geographies while investing in innovative hygiene solutions. Bain Capital’s integrated global platform and strong growth orientation are well aligned with the strategic vision for Diversey.”

Bain Capital Private Equity was founded in 1984 and invests in the consumer and retail; financial and business services; healthcare; industrials; and technology, media and telecommunications sectors. The firm has offices in New York and Boston (www.baincapitalprivateequity.com).

Sealed Air Corporation (NYSE:SEE) is a packaging company known for its brands – Cryovac food packaging, Bubble Wrap cushioning, and Diversey cleaning and hygiene. The company had revenues of $6.8 billion in 2016 and is headquartered in Charlotte, NC (www.sealedair.com).

Credit Suisse and Goldman Sachs together with Barclays, BofA Merrill Lynch, HSBC, RBC Capital Markets, and SunTrust Robinson Humphrey are providing committed financing for this transaction.

Citi is acting as financial advisor to Sealed Air. Barclays and RBC Capital Markets are serving as financial advisors to Bain Capital Private Equity.

This transaction is expected to close in the second half of 2017.

© 2017 Private Equity Professional | March 27, 2017

Cortec Acquires Cleaning Brands from Olympus

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Weiman Products, a portfolio company of the Cortec Group, has acquired the specialty cleaning brands of The Homax Group, a portfolio company of Olympus Partners. The acquired brands include Goo Gone, Magic, Stone Care International, Natural Magic, OOPS! Paint Remover, and Gonzo.

“This acquisition made perfect sense for Weiman,” said David Schnadig, a Managing Partner at Cortec. “Homax’s specialty cleaning product line is highly complementary to Weiman’s and supplements already strong brand equity and awareness, particularly with the well known Goo Gone and Magic brands.”

Homax Products, acquired by Olympus in 2004, is a supplier of branded, specialty-application consumer products to the home-care and repair markets. The company’s products are used for drywall texturing and repair, specialty cleaning, pest control, odor elimination, and surface preparation. Homax will retain its larger interior finishing division, which includes a full line of products for patching and repairing textured drywall and ceilings, specialty coatings for refinishing tubs and tile, steel wool and caulk strips for the DIY and contractor channels. Homax Products is headquartered in Bellingham, WA (www.homaxproducts.com).

“Adding Homax’s specialty cleaning brands to Weiman solidifies the company’s position as the leading specialty cleaning products provider in the market,” said Carl DeMasi, Weiman’s President and CEO. “We fully expect our customers, suppliers, and employees to benefit from this acquisition.”

Weiman, acquired by Cortec in October 2013, is a provider of branded specialty cleaning products for the consumer market, and specialty cleaning, sterilization and disinfectant products for the healthcare market. Weiman’s consumer division produces, markets and distributes over 50 formulations of branded specialty household cleaning products, sold under the Weiman and Wright’s brand names, that address cleaning needs within the home, appliance, furniture and other specialty categories. Weiman’s consumer products are sold through retailers in the global mass, food, drug, specialty and e-commerce channels. Weiman’s healthcare division develops and manufactures over 60 healthcare formulas, consisting of detergents, instrument care solutions, high level disinfectants for processing surgical instruments, and general surface disinfection products. The company’s healthcare products are used in the acute, physician, dental and veterinary healthcare markets and are sold to OEMs and distributors. Weiman is headquartered in the Chicago suburb of Gurnee, IL (www.weiman.com).

“The Homax management team did a great job growing the cleaning business, which is what made it such an attractive acquisition candidate. It should be a very good fit with Weiman,” said Manu Bettegowda, Partner at Olympus Partners. “The divestiture allows Homax to focus on its core paint business, which should be well positioned to continue to benefit from the recovery in residential remodeling activity.”

Olympus Partners, with $5 billion of capital under management, provides equity capital for middle market management buyouts and for companies needing capital for expansion. Sectors of interest include business services, restaurants, consumer products, healthcare services, and financial services. The firm was founded in 1988 and is based in Stamford, CT (www.olympuspartners.com).

Cortec Group invests in middle-market specialty manufacturing, service, healthcare and distribution businesses with enterprise values of $40 million to $300 million. Cortec currently manages over $1 billion in its two active funds. The firm was founded in 1984 and is based in New York (www.cortecgroup.com).

Sawaya Segalas & Co. (www.sawayasegalas.com), a consumer-focused investment banking firm, acted as exclusive financial advisor to Homax in connection with this transaction, and Kirkland & Ellis provided legal counsel.

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-28-14

Cortec Group Acquires Weiman Products

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Cortec Group has acquired Weiman Products, a provider of specialty cleaning products. Cortec invested in Weiman through its fifth fund, Cortec Group Fund V, L.P., and is the fund’s fifth platform investment.

“The entire team at Weiman is thrilled to be teaming with Cortec as we enter our next phase of growth. They bring to the table a unique blend of consumer and healthcare investing experience that will undoubtedly allow us to hit the ground running,” said Carl DeMasi, Weiman’s President and CEO.

Mr. DeMasi and the rest of the senior management team will continue in their current roles and as shareholders in the company.

Weiman is a provider of branded specialty cleaning products for the consumer market and specialty cleaning, sterilization and disinfectant products for the healthcare market. Weiman’s consumer division produces, markets and distributes over 50 formulations of branded specialty household cleaning products, all sold under the Weiman or Wright’s brand names, that address distinct cleaning needs within home, appliance, furniture and other specialty categories. The company’s consumer products are sold through retailers in the global mass, food, drug, specialty and e-Commerce channels, covering over 50,000 retail doors. The company’s healthcare division develops and manufactures over 60 healthcare formulas, consisting of detergents, instrument care solutions, high level disinfectants for processing surgical instruments, and general surface disinfection products. The company’s healthcare products are used in the acute, physician, dental and veterinary healthcare markets and are sold to the channel OEMs and distributors. Weiman Products was founded in 1963 and is based near Chicago in Gurnee, IL (www.weiman.com).

“Weiman has built an outstanding long-term track record under Carl DeMasi’s leadership, evidenced by 32 consecutive years of sales growth. The company’s consistent strong performance is directly attributable to the Weiman brand’s reputation for quality, efficacy and value among a broad range of consumers,” said David Schnadig, a Managing Partner at Cortec.

Cortec Group invests in middle-market specialty manufacturing, service, healthcare and distribution businesses with enterprise values of $40 million to $300 million. Cortec currently manages over $1 billion in its two active funds. The firm was founded in 1984 and is based in New York (www.cortecgroup.com).

“Weiman’s historical growth has been impressive, but Cortec is even more excited about the company’s future prospects. Through development of innovative products, expansion into adjacent channels and acquisitions, we believe the company is poised for accelerated growth and are looking forward to partnering with the Weiman team,” said Jeffrey Shannon, a Managing Director at Cortec.

Duff & Phelps Securities served as financial advisor to Weiman.

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-26-13