Global private investment firm, Bain Capital Private Equity, has announced through its investment in Diversey, it has reached agreement on the terms of a recommended final cash offer for UK cleaning and hygiene chemicals manufacturer, Zenith Hygiene Group.
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 £67 million 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, floor care 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.
Zenith Hygiene’s directors, consider the offer to be fair and reasonable and intend to unanimously recommend that Zenith Hygiene Shareholder accept it. The acquisition will be funded with cash from Diversey’s balance sheet.
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.”
Ringo Francis, CEO of Zenith Hygiene Group plc, commented: “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.
“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, added: “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.”
Completion is anticipated to take place during Q1 of 2018, subject to customary anti-trust clearance.