October 7, 2009 – LawFuel.com – Unilever today announced that it is to reduce its equity interest in JohnsonDiversey, Inc. from 33% to 4%. Unilever will receive $158 million in cash, together with $250 million senior notes with a 10.5% coupon, payable in cash or kind. This transaction follows on from the original 2002 sale of Unilever’s institutional and industrial cleaning business to Johnson Wax Professional. Cravath, Swaine & Moore LLP is representing Unilever in this transaction. Today’s transaction follows on from the original 2002 sale of Unilever’s institutional and industrial cleaning business to Johnson Wax Professional in which Cravath also represented Unilever.
JohnsonDiversey, Inc. and Clayton Dubilier & Rice, Inc. (CD&R) have also announced that CD&R is to take a 46% equity interest as part of a broader recapitalization transaction. In addition, JohnsonDiversey, Inc. will continue to sell and distribute certain Unilever products into the professional commercial cleaning and hygiene market. The transaction, which is conditioned upon completing the debt financing and customary regulatory approvals, is expected to close prior to the end of the year.
The Cravath team includes partners Mark I. Greene and LizabethAnn R. Eisen and associates Sarah S. Jones, Susan K. Jong and John R. Sobowleski (corporate). Morgan Stanley served as financial advisor to Unilever on the transaction. The Morgan Stanley team included Stephen R. Munger and Benjamin Frost. Goldman, Sachs & Co. and Citigroup Global Markets Inc. served as financial advisors to JohnsonDiversey, Inc. and Jones Day served as legal advisor to the company. Barclays Capital Inc., HSBC Securities (USA) Inc., Natixis, Rabobank Securities Inc. and RBC Capital Markets served as financial advisors to CD&R. Debevoise & Plimpton LLP served as legal advisor to CD&R.