Clayton, Dubilier & Rice (CD&R) is to acquire John Deere Landscapes (JDL), a unit of Deere & Company's agriculture and turf segment.
Deere will initially retain a 40 per cent ownership stake in the new standalone company. The carve-out transaction is valued at approximately USD465m.
With over USD1bn in annual revenue, JDL is the largest North American distributor of landscaping products sold primarily to professional landscape contractors for use in residential and commercial settings. JDL distributes wholesale irrigation, landscape lighting, nursery, and turf and maintenance supplies. Some turf and maintenance products are sold under the JDL-owned LESCO brand.
"John Deere Landscapes is a market-leading, branch-based distribution business managed by a talented executive team that we are very excited to have as partners," says David Wasserman, a CD&R partner. "The business has many attractive features, including scale, breadth of product offering and service excellence, all of which provide significant strategic and competitive advantages in supporting the requirements of the professional landscape contractor."
"CD&R's focus on growth and deep experience with businesses like ours make them an ideal partner," says David Werning, president of John Deere Landscapes. "Deere's ongoing equity ownership reflects its interest in remaining part of a successful landscapes distribution business."
Paul Pressler, a CD&R operating partner, will assume the role of chairman upon the close of the transaction, expected in December.
CD&R has obtained committed financing from UBS Loan Finance, ING Capital, HSBC Securities (USA) and Natixis. Debevoise & Plimpton acted as legal advisor to CD&R in connection with the transaction.