Jacuzzi (NYSE:JJZ)
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Apollo Management L.P. (“Apollo”)
today announced that its affiliates have signed a definitive merger
agreement to purchase Jacuzzi Brands, Inc. (NYSE: JJZ) in a transaction
having a total value of $1.25 billion, including the assumption of $257
million of outstanding debt, net of cash. Under the terms of the merger
agreement, Jacuzzi Brands shareholders will receive $12.50 per share in
cash.
The transaction, which is expected to close in the first quarter of
2007, will be financed through a combination of equity and debt and is
subject to the customary closing conditions, including receipt of equity
and debt financing, regulatory approval and approval by Jacuzzi Brands’
shareholders. The Board of Directors of Jacuzzi Brands has approved the
merger agreement and has recommended to Jacuzzi Brands’
shareholders that they vote in favor of the transaction.
Apollo also announced that, upon closing, Jacuzzi Brands’
water management business (“Zurn”),
a leader in the domestic water management industry, will be acquired by
one of its existing portfolio companies, Rexnord Corporation (www.rexnord.com),
a leading manufacturer of highly engineered power transmission,
aerospace, and other precision motion technology products. Jacuzzi Brands’
Bath and Spa businesses (“Jacuzzi Bath”),
the global leader in branded bath, spa and shower products, will become
a stand-alone company, retaining the Jacuzzi name. Al Marini, President
& CEO of Jacuzzi Brands will continue to have leadership responsibility
for both the Zurn and Jacuzzi Bath businesses.
Larry Berg, a Senior Partner of Apollo, said, “We
are excited to be partnering with George M. Sherman, Non-Executive
Chairman of Rexnord Corporation, and former President and CEO of Danaher
Corporation, in the acquisition of Jacuzzi Brands. George will assume
the role as Non-Executive Chairman of Jacuzzi Bath and will be a
co-investor with Apollo in this acquisition. We also look forward to
supporting Al Marini, and his management team, in continuing the success
of these businesses.”
George Sherman, said, “I look forward to
working with Al Marini and the management teams at Zurn and Jacuzzi
Bath. By adding Zurn to Rexnord’s already
successful business, we will create a high quality multi-industry
company with the potential for enhanced growth. As a private stand-alone
focused entity, Jacuzzi Bath has the potential to leverage premier
brands, innovation, and quality to achieve accelerated performance and
growth.”
Credit Suisse served as financial advisor to Apollo Management on this
transaction.
About Apollo
Apollo, founded in 1990, is a recognized leader in private equity, debt
and capital markets investing. Since its inception, Apollo has
successfully invested over $16 billion in companies representing a wide
variety of industries, both in the United States and internationally.
Apollo is currently investing its sixth private equity fund, Apollo
Investment Fund VI, L.P., which, along with related co-investment
entities, represents approximately $12 billion of new capital.
About Jacuzzi Brands
Jacuzzi Brands, Inc., through its subsidiaries, is a global manufacturer
and distributor of branded bath and plumbing products for the
residential, commercial and institutional markets. These include
whirlpool baths, spas, showers, sanitary ware and bathtubs, as well as
professional grade drainage, water control, commercial faucets and other
plumbing products. Its products are marketed under a portfolio of brand
names, including JACUZZI®,
SUNDANCE®, ZURN®,
and ASTRACAST®.
Forward-Looking Statements
Statements in this release that are not strictly historical may be “forward-looking”
statements, which involve risks and uncertainties. These include
economic and currency conditions, market demand, pricing and competitive
and technological factors, among others, as set forth in our SEC
filings. We undertake no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as otherwise required by law.
Although we believe this acquisition will occur, there can be no
assurance regarding the successful completion of either Apollo’s
acquisition of Jacuzzi or RBS Global/Rexnord Corporation’s
acquisition of Zurn.
Apollo Management L.P. ("Apollo") today announced that its
affiliates have signed a definitive merger agreement to purchase
Jacuzzi Brands, Inc. (NYSE: JJZ) in a transaction having a total value
of $1.25 billion, including the assumption of $257 million of
outstanding debt, net of cash. Under the terms of the merger
agreement, Jacuzzi Brands shareholders will receive $12.50 per share
in cash.
The transaction, which is expected to close in the first quarter
of 2007, will be financed through a combination of equity and debt and
is subject to the customary closing conditions, including receipt of
equity and debt financing, regulatory approval and approval by Jacuzzi
Brands' shareholders. The Board of Directors of Jacuzzi Brands has
approved the merger agreement and has recommended to Jacuzzi Brands'
shareholders that they vote in favor of the transaction.
Apollo also announced that, upon closing, Jacuzzi Brands' water
management business ("Zurn"), a leader in the domestic water
management industry, will be acquired by one of its existing portfolio
companies, Rexnord Corporation (www.rexnord.com), a leading
manufacturer of highly engineered power transmission, aerospace, and
other precision motion technology products. Jacuzzi Brands' Bath and
Spa businesses ("Jacuzzi Bath"), the global leader in branded bath,
spa and shower products, will become a stand-alone company, retaining
the Jacuzzi name. Al Marini, President & CEO of Jacuzzi Brands will
continue to have leadership responsibility for both the Zurn and
Jacuzzi Bath businesses.
Larry Berg, a Senior Partner of Apollo, said, "We are excited to
be partnering with George M. Sherman, Non-Executive Chairman of
Rexnord Corporation, and former President and CEO of Danaher
Corporation, in the acquisition of Jacuzzi Brands. George will assume
the role as Non-Executive Chairman of Jacuzzi Bath and will be a
co-investor with Apollo in this acquisition. We also look forward to
supporting Al Marini, and his management team, in continuing the
success of these businesses."
George Sherman, said, "I look forward to working with Al Marini
and the management teams at Zurn and Jacuzzi Bath. By adding Zurn to
Rexnord's already successful business, we will create a high quality
multi-industry company with the potential for enhanced growth. As a
private stand-alone focused entity, Jacuzzi Bath has the potential to
leverage premier brands, innovation, and quality to achieve
accelerated performance and growth."
Credit Suisse served as financial advisor to Apollo Management on
this transaction.
About Apollo
Apollo, founded in 1990, is a recognized leader in private equity,
debt and capital markets investing. Since its inception, Apollo has
successfully invested over $16 billion in companies representing a
wide variety of industries, both in the United States and
internationally. Apollo is currently investing its sixth private
equity fund, Apollo Investment Fund VI, L.P., which, along with
related co-investment entities, represents approximately $12 billion
of new capital.
About Jacuzzi Brands
Jacuzzi Brands, Inc., through its subsidiaries, is a global
manufacturer and distributor of branded bath and plumbing products for
the residential, commercial and institutional markets. These include
whirlpool baths, spas, showers, sanitary ware and bathtubs, as well as
professional grade drainage, water control, commercial faucets and
other plumbing products. Its products are marketed under a portfolio
of brand names, including JACUZZI(R), SUNDANCE(R), ZURN(R), and
ASTRACAST(R).
Forward-Looking Statements
Statements in this release that are not strictly historical may be
"forward-looking" statements, which involve risks and uncertainties.
These include economic and currency conditions, market demand, pricing
and competitive and technological factors, among others, as set forth
in our SEC filings. We undertake no obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as otherwise
required by law. Although we believe this acquisition will occur,
there can be no assurance regarding the successful completion of
either Apollo's acquisition of Jacuzzi or RBS Global/Rexnord
Corporation's acquisition of Zurn.