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Clayton, Dubilier & Rice to acquire SunSource

Funds managed by Clayton, Dubilier & Rice (CD&R) are to acquire a majority stake in SunSource Holdings, a distributor of hydraulic and pneumatic fluid power products in the US and Canada. Terms of the transaction have not been disclosed.

SunSource serves a diverse customer base which includes more than 20,000 original equipment manufacturers and end users of hydraulic and pneumatic equipment. The company’s broad product portfolio of pumps, motors, valves, cylinders and components for use in mobile hydraulics and electronics, industrial hydraulics and pneumatics, automation and fluid process equipment exceeds 200,000 SKUs. SunSource serves equipment manufacturers and users across a wide range of end markets, including construction, transportation, oil and gas, and others. The company also provides service and repair for the products it distributes as well as third-party products, drawing on in-house engineering capabilities and technical expertise.
 
“We have invested in many industrial distribution platforms over the years and we view SunSource as exceptionally well-positioned in terms of the value it adds it to its customers and supplier partners,” says CD&R Partner Nate Sleeper. “We are excited to work with this management team given their deep experience in the industry.  We look forward to helping the company accelerate future growth.”
 
CD&R Partner JL Zrebiec adds: “As a leader with differentiated capabilities in a highly fragmented market, SunSource is well-positioned to grow and further strengthen its position with customers who value its geographic reach, engineering and technical capabilities, deep product offerings and high levels of customer service.” 
 
“We see a lot of runway ahead for our business,” says David Sacher, President and Chief Executive Officer of SunSource. “We’ve enjoyed much success and growth by building a team of extraordinary associates who relentlessly focus on delivering unique value and solutions to our customers and suppliers, and we look forward to working with the team at CD&R to accelerate these efforts and energise our organisation.”
 
CD&R has obtained committed financing from Barclays, Credit Suisse Securities (USA) LLC, and Deutsche Bank AG New York Branch. Debevoise & Plimpton LLP served as CD&R’s legal advisor in the transaction.
 
 

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