This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
Supply House Times logo Supply House Times
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Supply House Times logo Supply House Times
  • Home
  • Magazine
    • Issues
    • Digital Editions
    • Archives
    • Ad Index
    • B.I.G Book
    • Rep Locator
  • Market Sectors
    • Plumbing
    • Bath & Kitchen
    • Industrial PVF
    • Radiant/Hydronics
    • HVAC
    • Fire Protection
    • Solar Thermal/Geothermal
    • Technology
    • Codes
    • Company News
    • ASA News
    • Women in Industry
  • Columnists
    • Mike Miazga: From the Editor
    • Dan Holohan: Heating Help
    • Hank Darlington: Showrooms
    • Jim Wheeler: HVAC
    • Bruce Merrifield: Distribution
    • Dirk Beveridge: Innovation Strategies
    • Michael Mercer: The Dr.’s Office
    • Letter from ASA President
    • Safety Columnists
  • Multimedia
    • Photo Gallery
    • Videos
    • Webinars
    • Podcasts
    • YouTube Channel
    • eBook
  • Special Editions
    • Premier 150
    • PVF Outlook
    • PB Outlook
    • Radiant Comfort Guide
    • Radiant & Hydronics Report
    • Green Plumbing & Heating
  • Products
  • More
    • Industry Calendar
    • Classified Ads
    • Industry Links
    • Custom Content & Marketing Services
    • Market Research
    • eNewsletters
    • Showrooms
    • Supply House Times Store
  • Bath & Kitchen Pro
  • Contact
  • Advertise
Home » July 23, 2007 - American Standard Bath and Kitchen Unit Sold to Bain Capital Partners
Bath & Kitchen TrendsLatest News

July 23, 2007 - American Standard Bath and Kitchen Unit Sold to Bain Capital Partners

July 23, 2007
Reprints
No Comments
American Standard Companies Inc. announced that it has signed a definitive agreement to sell the company’s worldwide Bath and Kitchen products business to funds advised by Bain Capital Partners, LLC, a leading global private investment firm, for $1.755 billion in cash.

American Standard Companies Inc. announced that it has signed a definitive agreement to sell the company’s worldwide Bath and Kitchen products business to funds advised by Bain Capital Partners, LLC, a leading global private investment firm, for $1.755 billion in cash.

Upon completion of the sale, Bain Capital will acquire all of American Standard's Bath and Kitchen business with 2006 annual sales of $2.4 billion, 26,000 employees and 54 production facilities in 23 countries worldwide. The business manufactures and markets industry-leading products under brand names such as American Standard®, Ideal Standard®, Armitage Shanks®, Porcher®, Jado®, Ceramica Dolomite® and Vidima®.

Bain Capital is a global private investment firm based in Boston that manages several pools of capital, including private equity, high-yield assets, mezzanine capital and public equity with approximately $50 billion in assets under management. The company was recently involved in the purchase of The Home Depot’s HD Supply unit, as part of a purchasing group that included The Carlyle Group and Clayton, Dubilier & Rice Inc.

The sale closing is expected to occur early in the fourth quarter. The company intends to use proceeds of the sale primarily to repurchase common stock and reduce debt to keep the company at investment-grade standards. The sale is subject to normal regulatory approvals and customary closing conditions. Shareholder approval is not required. The buyer has secured firm financing commitments.

On Feb. 1, 2007, American Standard announced plans to separate its three businesses by selling Bath and Kitchen, spinning off Vehicle Control Systems and retaining its largest business, Air Conditioning Systems and Services. This announcement is the final step needed for completion of those plans following the spinoff of Vehicle Control Systems as an independent publicly traded company to be known as WABCO, which is scheduled for July 31 at 11:59 p.m. EDT. In March, the company sold Venesta Washroom Systems, which was part of Bath and Kitchen. Combined with Venesta, proceeds for the sale of Bath and Kitchen total $1.92 billion.

Following the spinoff and the sale, American Standard Companies will change its name to Trane. Trane is the flagship brand of its global Air Conditioning Systems and Services business, which last year generated sales of $6.8 billion. Trane will retain the American Standard brand name for its heating, ventilating and air conditioning (HVAC) and related products, while the newly formed Bath and Kitchen business will retain the name for its markets.

“This is a major milestone in our plan to separate American Standard into three focused, better understood companies,” said Fred Poses, American Standard chairman and CEO. “We believe that Bain Capital's all-cash offer provides excellent value for our shareowners. Bath and Kitchen is a global market leader, with size, global reach and organizational talent. It has a rich history and a great future for its customers, employees and new owners.”

“This is a market-leading global company with a wonderful heritage, a strong portfolio of brands, deep customer relationships and an experienced management team,” said Steve Barnes, a managing director at Bain Capital based in Boston.

“We look forward to supporting the management team and dedicated employees in realizing the company's full potential through continued operational improvements, further enhancing and leveraging its strong family of brands, and accelerating growth,” added Walid Sarkis, a London-based managing director at Bain Capital.

American Standard Companies is completing plans to spin off WABCO. Regular trading of WABCO's common stock (WBC) is set to begin Aug. 1 on the New York Stock Exchange. It is currently traded on a “when issued” basis.

American Standard’s financial advisor for the Bath and Kitchen sale is Lazard. Its legal counsel is Skadden Arps. For Bain Capital, Bank of America, N.A. and Credit Suisse provided financing, Lehman Brothers acted as financial advisors, Kirkland & Ellis LLP served as legal counsel, and PricewaterhouseCoopers provided transaction advisory services.

sht-subscribe

Related Articles

Nov. 25, 2007 ― American Standard Bath & Kitchen Further Divided

March 30, 2007 - American Standard Sells British Bath Unit

WaterSense names American Standard, Kohler Partners of the Year

American Standard partners with family housing homeless shelter

You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • Print & Digital Edition Subscriptions
  • eNewsletters
  • Online Registration
  • Subscription Customer Service

More Videos

Popular Stories

First Supply acquires lighting store

Oatey acquires certain assets of The Keeney Mfg. Co.

First Supply acquires lighting store

Ferguson Ventures invests in Whisker Labs and Ting technology

Milwaukee Tool

The value of independent manufacturers reps

dodge outlook 2020 report

Construction starts to slip back in 2020

Meet incoming ASA President Bill Glockner

Meet incoming ASA President Bill Glockner

SHTPremier150-360


sht-young-execs-360

Events

June 5, 2019

Do You Know Everything You Need to Know About North American Drinking Water Laws?

On Demand Protecting drinking water is of paramount importance.  The last decade has seen the enactment of safe drinking water laws that safeguard our water for consumption.  These laws can lead to confusion in determining which applications are regulated and which materials are safe to be installed in these applications. 

December 30, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Products

Valve Handbook, 3rd Edition

Valve Handbook, 3rd Edition

Revised to include details on the latest technologies, Valve Handbook, Third Edition, discusses design, performance, selection, operation, and application. This updated resource features a new chapter on the green technology currently employed by the valve industry, as well as an overview of the major environmental global standards that process plants are expected to meet.

See More Products

SHT-Meet20Women-360

Supply House Times

SHT 1119 cover

2019 November

Check out November issue of Supply House Times features a chat with incoming ASA President Bill Glockner of Hirsch Pipe & Supply, plus a complete recap of ASA’s NETWORK2019 50th anniversary celebration. We also have the latest tool trends and a look at how Milwaukee Tool best utilizes its network of independent manufacturers reps.

View More Create Account
  • Additional Links
    • Ad Index
    • List Rental
    • Order Reprints
    • Web Exclusives
    • Supply House Times Store
    • Bath & Kitchen Pro
    • Contact Us
    • eNewsletters
    • Privacy Policy
  • Want More?
    • Connect
    • Industry Links
    • Survey And Sample
  • Plumbing Group
    • Plumbing & Mechanical
    • PM Engineer

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing