Overview
During both expansionary and recessionary periods CD&R has created value for its portfolio businesses. For example, EBITDA has increased more than ten-fold through the course of CD&R’s investment in Alliant, which was sold to Royal Ahold in 2001.
Similarly, during periods of market dislocations and limited liquidity, when other private equity firms have been largely inactive, CD&R has successfully deployed capital in innovative ways, such as the landmark purchase of IBM’s printer and supplies businesses that led to the creation of Lexmark International. Although at the time of the 1991 investment the financing markets in the U.S. were in turmoil, credit markets were largely frozen due to the collapse of Drexel Burnham and concern was widespread regarding highly leveraged loans, the transaction ranks as one of Private Equity International magazine’s 30 most influential private equity deals. ¹
Operating skills are even more relevant during periods when credit markets are more selective and capital providers favor “hands-on” investors that remain actively involved with the operations of each portfolio company for the duration of each investment.
Our primary objective remains constant for every investment irrespective of macro-economic conditions: to be an agent of constructive change for the long-term health of the portfolio company. Examples include:
- Transforming Kinko’s from a loose confederation of locally owned and operated copy shops into an integrated worldwide leader in document management and business services;
- Driving profitability and productivity improvements while positioning Culligan for accelerated growth through new products, services and markets;
- Tripling Jafra’s profits by outsourcing select functions and doubling its direct sales force;
- Revitalizing Kraft Food Service (now Alliant) by generating 60% more revenue and tripling its profits;
- Transforming Brakes from a family enterprise built through corporate acquisitions into an integrated and growing broad line food distributor;
- Improving operating profit at VWR by more than 60%.
¹ Private Equity International, June 2004
During both expansionary and recessionary periods CD&R has created value for its portfolio businesses. For example, EBITDA has increased more than ten-fold through the course of CD&R’s investment in Alliant, which was sold to Royal Ahold in 2001.
Similarly, during periods of market dislocations and limited liquidity, when other private equity firms have been largely inactive, CD&R has successfully deployed capital in innovative ways, such as the landmark purchase of IBM’s printer and supplies businesses that led to the creation of Lexmark International. Although at the time of the 1991 investment the financing markets in the U.S. were in turmoil, credit markets were largely frozen due to the collapse of Drexel Burnham and concern was widespread regarding highly leveraged loans, the transaction ranks as one of Private Equity International magazine’s 30 most influential private equity deals. ¹
Operating skills are even more relevant during periods when credit markets are more selective and capital providers favor “hands-on” investors that remain actively involved with the operations of each portfolio company for the duration of each investment.
Our primary objective remains constant for every investment irrespective of macro-economic conditions: to be an agent of constructive change for the long-term health of the portfolio company. Examples include:
- Transforming Kinko’s from a loose confederation of locally owned and operated copy shops into an integrated worldwide leader in document management and business services;
- Driving profitability and productivity improvements while positioning Culligan for accelerated growth through new products, services and markets;
- Tripling Jafra’s profits by outsourcing select functions and doubling its direct sales force;
- Revitalizing Kraft Food Service (now Alliant) by generating 60% more revenue and tripling its profits;
- Transforming Brakes from a family enterprise built through corporate acquisitions into an integrated and growing broad line food distributor;
- Improving operating profit at VWR by more than 60%.
¹ Private Equity International, June 2004
