Clayton, Dubilier & Rice to pay $400 mln for High Ridge Brands: sources

Clayton, Dubilier & Rice has agreed to pay about $400 million to buy High Ridge Brands from Brynwood Partners as the New York firm looks to grow the owner of national shampoo and soap brands, according to sources.

A spokesman for CD&R declined to comment. Brynwood did not comment.

A deal could be formally announced as early as Tuesday, the sources said.

Investment banker William Blair advised High Ridge Brands on the deal.

Brynwood, of Greenwich, Connecticut, lists High Ridge Brands as a portfolio company of Brynwood Partners VI LP, a vintage 2009 fund that drew in $305 million in commitments.

CD&R closed its most recent flagship fund, Clayton Dubilier & Rice Fund IX, with $6.25 billion in commitments in 2014.

Based in Stamford, Connecticut, High Ridge bills itself as America’s fourth-largest nationally branded hair-care manufacturer and North America’s fifth-largest nationally branded soap manufacturer and distributor, according to its website.

Brands include Rave hair products, Zest soap, White Rain shampoo and Alberto VO5 hair products.

CD&R is buying the company at a time when consumer majors like Procter & Gamble continue to shed non-core brands. P&G sold Zest to High Ridge in 2011.

CD&R ownership of consumer companies includes rental-car giant Hertz and Sally Beauty Holdings, among others.

Operating partners at CD&R with consumer brand backgrounds include Vindi Banga, a 33-year veteran of Unilever; John Compton, former president of PepsiCo Inc, and Paul Pressler, former CEO of Gap Inc and an ex-Disney executive.

Action Item: High Ridge Brands, http://highridgebrands.com/about/

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