Cleaning & Restoration Breaking News

JohnsonDiversey announces investment and recapitalization, name change

October 7, 2009
/ Print / Reprints /
ShareMore
/ Text Size+

RACINE, WISCONSIN/NEW YORK, October 7, 2009 – JohnsonDiversey, Inc. and Clayton Dubilier & Rice, Inc. (“CD&R”) today announced an agreement under which a CD&R-managed fund will invest $477 million for a 46 percent equity interest in the company as part of a broader recapitalization transaction valued at $2.6 billion.

The recapitalization will provide the company with the financial flexibility to accelerate growth in the global commercial cleaning and hygiene market. In addition to the CD&R fund investment, the transaction contemplates a debt financing package of approximately $1.9 billion. With annual sales of more than $3.0 billion into more than 175 countries, JohnsonDiversey is a leading global provider of commercial cleaning, sanitation and hygiene solutions. The company serves commercial customers in the building, retail, healthcare and food and beverage sectors, as well as large, public sector clients such as the National Health Service in the U.K. and the State of New York. Among its private-sector customers are The Coca-Cola Company, PepsiCo., pharmaceutical retailer Walgreens and global facilities services provider ISS.

“JohnsonDiversey is a market leader providing innovative products and services to meet the needs of a world increasingly concerned about health and hygiene,” said Richard J. Schnall, a CD&R partner. “The management team has positioned the company for future growth, and we look forward to working closely with them to continue building on the company’s competitive strengths and creating an even more valuable enterprise over the long term.”

Under the terms of the agreement, the Johnson Family of Racine, Wisconsin, will retain 50 percent ownership in the company, and S. Curtis Johnson will remain Chairman. CD&R Operating Partner James G. Berges will serve as Chairman of the Executive Committee. Unilever will also retain a 4% ownership interest in the company. JohnsonDiversey will continue under separate agreements to sell and distribute into the commercial market certain Unilever and S.C. Johnson & Son, Inc. consumer-branded products.

“This is an exciting development in the evolution of our company,” Mr. Johnson said. “The Johnson Family is pleased to move forward with a proven business builder and strong equity partner of CD&R’s caliber. The firm’s integrity, culture and values align well with our own.”

JohnsonDiversey President and CEO Ed Lonergan added: “We’ve made great progress in recent years and continue to be our customers’ partner of choice for superior and sustainable cleaning and hygiene solutions that protect human health and the environment. CD&R’s investment provides both financial flexibility and access to the firm’s significant operating expertise that will help us continue to achieve our long-term objectives.”

In recent months, the company has announced major steps toward protecting human health and the environment, including:
  • A comprehensive product and training guide to respond to the H1N1 flu virus;
  • New product innovations that reduce chemical, water and energy use while protecting workers; and
  • Charter membership in the World Wildlife Fund Global Water Roundtable.
JohnsonDiversey has been one-third owned by Unilever NV since its acquisition of DiverseyLever in 2002. As part of the 2002 acquisition, JohnsonDiversey agreed to purchase all or part of Unilever’s ownership at a future date.

The company is also announcing it will adopt a new corporate identity that reflects elements of the strong global brand equity in the current name and also retains the depiction of a water lily in its logo, a reflection of the Johnson Family heritage of environmental leadership. The company’s new name will be simplified to “Diversey, Inc.,” and its identity will be formally captured in the new tagline, “for a cleaner, healthier future.”

“Our new identity will both acknowledge our rich heritage and offer a compelling view of the enduring benefits that our products and services provide,” Mr. Johnson said. “Our people are inspired by the difference we make in people’s lives.”

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

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

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

1/27/15 2:00 pm EST

Grow Your Business and Improve Operations with New Payment Technology

Attend this free webinar to learn how new developments in payment technology can help you close more jobs, increase upselling opportunities and improve operations.

Podcasts

The winter slow season is a great time to pursue commercial cleaning accounts and stay busy. John "the Hitman" Braun solicited questions from thousands of cleaners across the country regarding their questions on commercial cleaning accounts and answers them in this episode of the show.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2014 Nov/Dec

The Nov/Dec ICS features content on how to get better meter readings, a roundtable on truckmount development, neighborhood marketing and more. Also included is the annual Buyer’s Guide and Directory.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive

THE ICS STORE

FinalCover.gif
The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.pngcrc logo

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view