Clayton, Dubilier & Rice Seeks to Take Focus Financial Partners Private
Posted on 02/03/2023
Focus Financial Partners Inc. has entered into an exclusivity agreement for a limited period with private equity firm Clayton, Dubilier & Rice, LLC (CD&R) to engage in negotiations regarding the terms and definitive agreements whereby CD&R may potentially acquire Focus for US$ 53 per share in cash, which comes out to around US$ 4.1 billion. Focus Financial Partners is a New York-based aggregator of wealth management firms.
A Special Committee of the Board of Directors approved the exclusivity agreement based on CD&R meeting the Special Committee’s requirement of US$ 53 per share after a series of negotiations with CD&R and outreach and meetings with other potential bidders. CD&R has communicated that its latest non-binding offer of US$ 53 per share represented its “best and final” offer and that it was submitted with the understanding that there would be no further price negotiations.
Stone Point Capital is the largest shareholder of Focus Financial Partners and is considering retaining a portion of their investment and providing new equity financing, subject to negotiation with CD&R of definitive agreements on mutually agreeable terms.
In April 2017, an investor group led by Stone Point Capital and KKR acquired a majority stake in Focus Financial Partners, which valued Focus at approximately US$ 2 billion. Those selling shareholders’ included Focus’ existing private equity investors, Centerbridge Partners, Summit Partners and Polaris Partners, as well as certain wealth management affiliates and employees.
In 2018, Focus Financial Partners went public.
Keywords: Stone Point Capital LLC.