NEW YORK (Aug. 22, 11:45 a.m. ET) – New York investment firm Clayton, Dubilier & Rice has purchased a 51 percent stake in high-pressure laminates maker Wilsonart International Holdings LLC.
The seller is Glenview, Ill.-based Illinois Tool Works Inc. Through a combination of CD&R's equity investment of $395 million and borrowing by the new company, ITW will receive about $1.05 billion in cash, and will retain a 49 percent equity interest in Wilsonart.
Wilsonart's laminates are used in furniture, countertops and other applications. It posted 2011 sales of $1.1 billion.
When the deal closes, Paul Pressler, a CD&R operating partner, will become interim CEO of Wilsonart. The purchase is scheduled to be complete in the fourth quarter.
“We look forward to working with the management team to expand globally, invest in industry-leading innovation, service and distribution capabilities, and provide rewarding career opportunities for employees,” Pressler said in a news release.
This is the second significant plastics-related divestiture for ITW this summer. On Aug. 2 Plastics News reported that ITW sold its Minigrip resealable bag business to Livingston, N.J.-based Inteplast Group Ltd.