Affiliates of private equity firm Apollo Management L.P. will purchase Jacuzzi Brands for $12.50 per share in cash. The transaction will have a total value of $1.25 billion, which includes the assumption of nearly $260 million in outstanding debt. It is expected to close in the first quarter of 2007.
Upon completion of the deal, George M. Sherman, nonexecutive chairman of Rexnord Corp., will become nonexecutive chairman of Jacuzzi Brands and a co-investor with Apollo. The Zurn Industries portion of the business will be transferred to Rexnord for $950 million in cash. Rexnord manufactures power transmission, aerospace and other precision motion technology products.
Jacuzzi's bath business will become an independent portfolio company of Apollo. Certain members of Jacuzzi Brands management, including President and CEO Alex Marini, are expected to remain with the businesses after the closing.
Marini was recently appointed CEO of Jacuzzi after David H. Clarke retired. He was named president and COO of the company in August 2005. Previously, he was the president of Zurn.