Cleanzine: your weekly cleaning and hygiene industry newsletter 18th April 2024 Issue no. 1110
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Bain makes offer for Zenith Hygiene to expand Diversey in Europe
Bain Capital Private Equity has this week announced that it has, through its investment in Diversey, reached agreement on the terms of a recommended final cash offer for Zenith Hygiene Group, the UK manufacturer of cleaning and hygiene chemicals and related products.
Based in Hertfordshire, Zenith Hygiene offers a wide, high-quality range of products serving customers in the healthcare, food service, hospitality, leisure and facilities management, pharmaceutical, and food and beverage processing industries. The company employs more than 500 people and generated net sales of £67m in the fiscal year ending February 2017.
Bain Capital completed the acquisition of Diversey from Sealed Air in September 2017. Diversey is a global supplier of hygiene and cleaning solutions that integrates chemicals, floorcare machines, tools and equipment with a wide range of technology-based value-added services, food safety services and water and energy management. Globally, Diversey employs approximately 8,600 people and generated net sales of approximately $2.6 billion in 2016.
Bain Capital has received irrevocable undertakings representing 91.01% of A shares and 100% of the C shares of Zenith Hygiene in issue as of the close of business on 6th October 2017. Zenith Hygiene's directors consider the offer to be fair and reasonable and intend to unanimously recommend that Zenith Hygiene Shareholders accept it. The acquisition will be funded with cash from Diversey's balance sheet.
Completion is anticipated to take place during Q1 of 2018, subject to customary anti-trust clearance.
"We are excited to join Diversey and be part of a group benefiting from Bain Capital's integrated global platform and bold growth plans for Diversey," says Ringo Francis, CEO of Zenith Hygiene Group.
"During the past 20 years, we have successfully grown the business by developing a comprehensive product offering in the UK and Ireland. We believe that all customers will benefit from the combination of both companies' innovations and application expertise."
Dr Ilham Kadri, president and chief executive officer of Diversey, says: "I am excited by the opportunity to build Diversey's local scale in the UK and Ireland with the acquisition of Zenith Hygiene. This combination, with the backing of Bain Capital, would create significant scale and help us serve a broader base of customers in key markets around the world."
Michel Plantevin, a managing director of Bain Capital Private Equity, said: "We are committed to growing Diversey's geographic reach and the addition of Zenith Hygiene would be a first valuable step towards creating a world-class provider of cleaning and hygiene solutions."
www.diversey.com / www.zhgplc.com
12th October 2017