Clayton, Dubilier & Rice to purchase Brake Bros

Investee Company – Brake Bros plc

Investee Company Business Type – Catering company

Type of Financing – Acquisition

Equity Providers – Clayton, Dubilier & Rice, Inc

Equity Leader (Individual) – Roberto Quarta & David Novak (Clayton, Dubilier & Rice – London); Richard Schnall & James Rogers (Clayton, Dubilier & Rice – US)

Debt Providers – Credit Suisse First Boston & J.P. Morgan

Debt Type – Bank debt, high yield

Debt Leader (Individual) – N/K

Equity Amount – £275 million

Total Deal Value – £433.7 million

Other Advisors – Credit Suisse First Boston, and Merill Lynch

Comments – Clayton, Dubilier & Rice is to purchase 100 per cent of the equity of Brake Bros for £433.7 million. The acquisition is being made through CDRP Acquisition, a specially created vehicle which will pay 825p a share for Brake Bros. The offer is unconditional as the Brake family, which owns 59 per cent of the shares has committed irrevocably to accept the offer.

Established in 1958, Brakes is the leading supplier of quality frozen, chilled, fresh and ambient food to the catering industry across the UK and France, with a group turnover exceeding £1 billion. The company’s growth has not only been organic but is also the result of acquisitions of wholesaler businesses throughout the UK. These have typically been small businesses which have then been fully integrated into the group.

Through a combination of increased funding and with the help of CD&R’s management expertise and broad knowledge of sectors, this deal will create significant growth opportunities for Brake Bros.

Frank Brake, chairman of Brake Bros, said: “I am delighted that we have been able to secure this offer, which represents a successful conclusion to our strategic review announced in March. We believe the offer provides excellent value for Brake Bros shareholders and are confident in the future of the business and its employees under the stewardship of CD&R.”

Roberto Quarta, a CD&R principal in London, said: “Frank Brake and his team have built a great business with excellent prospects. We intend to build on this success and continue the development of the leading pan-European food services distributor.”