The Duchossois Group, has agreed to sell The Chamberlain Group, a specialist in smart access solutions, to private equity funds managed by Blackstone (Blackstone) in a deal with a USD5 billion valuation.
Blackstone is investing in Chamberlain Group through its core private equity strategy, which invests in high-quality, market-leading companies for longer periods than traditional private equity.
Following the close of the transaction, Chamberlain Group will remain a privately held company headquartered in Oak Brook, Illinois. As part of the agreement, The Duchossois Group will retain meaningful ownership in the Company and two seats on the Company’s Board of Directors following the closing of the transaction.
A leading global investment firm, Blackstone is expected to provide additional resources and expertise for Chamberlain Group to scale its software-based and connected services business into new markets. Chamberlain Group will build on its leading presence providing high-quality access hardware and seamless, cloud-driven solutions that move customers safely through their garages, homes, communities, businesses and storage facilities. With its transformational myQ platform, which brings access to life by empowering new behaviours, the investment from Blackstone will position Chamberlain Group to capitalise on connectivity megatrends and expand its software services strategy deeper into commercial, industrial and automotive markets.
“Today marks an important inflection point for Chamberlain Group as it continues its growth and transformation story,” says JoAnna Sohovich, CEO of Chamberlain Group. “I enthusiastically support this transaction because it is in the best interests of our shareholders and our Company. Blackstone’s deep experience and success in forming large corporate partnerships with family-led companies provides us with the perfect foundation to propel Chamberlain Group through its next chapter. Blackstone’s extensive presence across geographies will help Chamberlain Group build meaningful relationships and capitalise on new market opportunities.”
Craig Duchossois, Executive Chair of The Duchossois Group, adds: “Chamberlain Group has been an important part of our family since 1980. The Duchossois Group has instilled deep-rooted values and resources across Chamberlain Group, and we are exceptionally proud of the strong, vibrant and growing business it is today. As an ongoing investor in the Company, we look forward to the team’s future accomplishments with Blackstone’s support and partnership. Under new ownership, I know that Chamberlain Group will continue to meet market needs in an innovative and quality manner, while taking full advantage of the broad talent, reach and experience apparent across the Blackstone organisation.”
Peter Wallace, Global Head of Core Private Equity at Blackstone, says: “Our long-term Core Private Equity business is proud to invest in an enduring market leader like Chamberlain Group. The Duchossois Group and Chamberlain Group’s leadership team have built a tremendous business. We admire the Company’s deep commitment to quality, the brand loyalty it has earned through consistent excellence, and its constant drive to enrich customer offerings through technology. We believe these qualities will continue to drive growth for years to come and we are excited to partner with the Company on that journey.”
Seth Meisel, a Senior Managing Director at Blackstone, says: “Chamberlain Group stands at the centre of several secular mega trends — including US. housing and e-commerce — that are key thematic investment areas for Blackstone. We are excited to invest in this business and its further expansion into connected homes, businesses, and communities alongside Chamberlain Group’s impressive management team.”
The transaction is expected to close by the end of 2021, subject to regulatory approvals and customary closing conditions.
