VWR to be acquired by Madison Dearborn Partners
VWR International, Inc., a portfolio company of Clayton, Dubilier & Rice, Inc. (CD&R) and a leader in the global laboratory supply industry, today announced that CDRV Investors, Inc., its parent company, has entered into a definitive agreement that will result in VWR being acquired by Madison Dearborn Partners (MDP). The transaction is expected to be completed during the third quarter of 2007, subject to customary closing conditions. Terms of the transaction were not disclosed.
This announcement follows a period of significant growth and profitability for VWR, driven by strategic initiatives designed to make VWR the supplier of choice in the $27 billion global laboratory supply industry. With 2006 revenue of over $3.2 billion, VWR is the second largest distributor in the industry and has a global base of customers in pharmaceuticals, biotechnology, education and industry.
"This transaction is clear recognition of our achievements over the past three years," said VWR President and Chief Executive Officer, John Ballbach. "Together with the team from CD&R, we have put together a very talented management team, restructured our operations to more efficiently serve customers, made significant debt repayments and launched our business in Asia. We are very appreciative of our employees. efforts, as well as the loyalty of our customers, which have together made VWR the market leader it is today. We look forward to continuing to execute our strategy together with Madison Dearborn Partners and to maintaining our position as a market leader."
Madison Dearborn Partners is one of the most successful private equity investors in the U.S. Since its formation in 1993, MDP funds have closed over 100 transactions in the U.S. and Europe. Tim Sullivan, a Managing Director for MDP, said: "We believe VWR is the premier distributor to the global laboratory supply industry. The Company's outstanding management team, superior distribution capabilities and excellent vendor and customer relationships are keys to its success. We are excited about the Company's leadership and opportunity for continued growth."
Richard J. Schnall, a VWR director and partner at Clayton, Dubilier & Rice, which acquired VWR from Merck KGaA in April of 2004, said, "We are extremely proud of the management team and of the performance gains achieved by the business over the period of our ownership. VWR is a great company and is positioned to continue to grow and prosper in the future."
Source: VWR International