Jacuzzi to Go Private in Buyout
Private equity firm Apollo Management said Wednesday that it would pay $990 million in cash for Jacuzzi Brands Inc., taking the well-known maker of whirlpool baths private.
Shareholders would receive $12.50 a share, 21% higher than Jacuzzi’s closing price of $10.35 on Tuesday.
Apollo said it would combine the company’s lesser-known plumbing business with Rexnord Corp., which Apollo bought a few months ago from private equity firm Carlyle Group.
Jacuzzi’s plumbing business, Zurn Industries, accounts for a lesser part of the company’s sales than its bath business but is far more profitable. It had sales of $315.9 million during the first nine months of this year and operating profit of $65.5 million, while spa business sales were $573 million with operating income of $28.7 million.
The West Palm Beach, Fla., company posted a loss of $3.9 million during its fiscal third quarter ended in June.
Jacuzzi’s board has approved the deal, which it expects to close in the first quarter of 2007.
Jacuzzi shares rose $2 to $12.35.
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