PISCATAWAY, N.J. - American Standard Companies Inc. announced that it has signed a definitive agreement to sell the company's worldwide Bath and Kitchen products business to funds advised by Bain Capital Partners LLC, a leading global private investment firm, for $1.755 billion in cash.
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. American Standard 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.
On Feb. 1, 2007, American Standard announced plans to separate
its three businesses by selling Bath and Kitchen, spinning off Vehicle Control
Systems, and retaining its largest business, Air Conditioning Systems and
Services. This announcement is the final step needed for completion of those
plans following the spinoff of Vehicle Control Systems as an independent
publicly traded company to be known as WABCO, which is scheduled for July 31 at
11:59 p.m. EDT. In March, the company sold Venesta Washroom Systems, which was
part of Bath and Kitchen. Combined with Venesta, proceeds for the sale of Bath
and Kitchen total $1.92 billion.
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. 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.
"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
July 24, 2007: American Standard to Sell Bath and Kitchen Business to Bain Capital
July 24, 2007