PISCATAWAY, N.J. - American Standard Companies Inc. signed a definitive agreement to sell the company’s worldwide Bath and Kitchen products business to funds advised by Bain Capital Partners LLC, a private investment firm, for $1.755 billion in cash.
Following the spinoff and the sale, American Standard
Companies will change its name to Trane. Trane is the flagship brand of its
global Air Conditioning Systems and Services business, which last year
generated sales of $6.8 billion. Trane will retain the American Standard brand
name for its HVAC and related products, while the newly formed Bath and Kitchen
business will retain the name for its markets.
Upon completion of the sale, Bain Capital will acquire all
of American Standard’s Bath and Kitchen business with 2006 annual sales of $2.4
billion, 26,000 employees, and 54 production facilities in 23 countries
worldwide. The business manufactures and markets products under brand names
such as American Standard®, Ideal Standard®, Armitage Shanks®, Porcher®, Jado®,
Ceramica Dolomite®, and Vidima®.
The sale closing is expected to occur early in the fourth
quarter. The company intends to use proceeds of the sale primarily to
repurchase common stock and reduce debt to keep the company at investment-grade
standards. The sale is subject to normal regulatory approvals and customary
closing conditions. Shareholder approval is not required. The buyer has secured
firm financing commitments.
“This is a major milestone in our plan to separate American
Standard into three focused, better understood companies,” said Fred Poses,
American Standard chairman and CEO.
“We believe that Bain Capital’s all-cash offer provides
excellent value for our shareowners. Bath and Kitchen is a global market
leader, with size, global reach, and organizational talent. It has a rich
history and a great future for its customers, employees, and new owners.”
“This is a market-leading global company with a wonderful
heritage, a strong portfolio of brands, deep customer relationships, and an
experienced management team,” said Steve Barnes, a managing director at Bain
For more information, visit www.americanstandard.com.