(Bloomberg) -- A group of investors led by Rock Mountain Capital and Olayan Group have acquired a 48% stake in PurposeBuilt Brands, a provider of consumer retail and commercial cleaning products, with Carlyle Group Inc. exiting its investment.
As part of the agreement, company management and existing investor TA Associates are rolling 100% of their equity to hold a 52% ownership stake. Financial terms of the deal weren't disclosed.
The transaction values the company at about $1.6 billion including debt, a person familiar with the agreement said, asking not to be identified because it was private. Bloomberg News first reported talks for a sale in December.
Founded in 1941 as Weiman, PurposeBuilt distributes a slate of cleaning products used in residences and commercial facilities such as hospitals and food-service venues. Brands owned by the Gurnee, Illinois-based company include: Weiman, Stone Care, Gonzo Natural Magic, Goo Gone, Magic and Wright's. Carlyle and TA Associates first invested in the business in 2019.
PurposeBuilt, during Carlyle's ownership, made three add-on acquisitions to expand its inventory with 30 Seconds Cleaners and sustainable-focused products such as Green Gobbler and BioKleen.
“We're pleased to have worked with management to make the portfolio more green, sustainable and eco-friendly,” said David Basto, a managing director at Carlyle. “In combination of organic growth plus the acquisition growth, we were able to achieve the company's longer-range goals sooner than anticipated.”
Rock Mountain was founded in 2019 by managing partner David Stonehill, a private equity veteran who worked at Carlyle for almost a decade. The New York-based firm focuses on deals spanning consumer goods, consumer-facing health-care services, and tech, media and technology.
According to Stonehill, “the plan the prior owners had and the plan that Rock Mountain and Olayan plan to execute in partnership with TA is all the same.” Before leaving Carlyle in 2019, Stonehill said he'd been hands on with the firm's due diligence process for PurposeBuilt.
Established in 1947, the Olayan Group is a global investment company with single-family ownership and is based in Liechtenstein. The firm has offices in New York, London, Luxembourg, Vienna, Athens, Singapore and Riyadh.
Kirkland & Ellis served as legal counsel to PurposeBuilt Brands, while Barclays Plc, Morgan Stanley and Baird acted as financial advisers. The Olayan Group was represented by Shearman and Sterling, while Goodwin Procter acted as legal adviser to Rock Mountain.
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