- Roper Technologies Inc (NYSE:ROP) has agreed to sell a majority stake in its industrial businesses to affiliates of Clayton, Dubilier & Rice, LLC (CD&R) for cash proceeds of ~$2.6 billion while retaining a 49% minority interest in a new standalone entity.
- The following businesses are involved in the transaction: Alpha, AMOT, CCC, Cornell, Dynisco, FTI, Hansen, Hardy, Logitech, Metrix, PAC, Roper Pump, Struers, Technolog, Uson, and Viatran. In FY21, these firms generated $940 million in revenue and $260 million in EBITDA.
- "This is the final step in Roper's divestiture strategy to reduce the cyclicality and asset intensity of our enterprise," said CEO Neil Hunn.
- "The after-tax proceeds from this transaction will expand Roper's M&A firepower to more than $7 billion, which will be targeted toward our large pipeline of high-quality acquisition opportunities," Hun added.
- Beginning 2Q22, Roper plans to report the results of these businesses as discontinued operations. It expects this transaction to close by the end of 2022.
- Price Action: ROP shares are trading lower by 1.64% at $435.20 on the last check Wednesday.
