Clayton, Dubilier & Rice
| Company type | Private |
|---|---|
| Industry | Private equity |
| Founded | 1978 |
| Founder | Martin H. Dubilier, Eugene Clayton, Bill Welsh |
| Headquarters | New York City , United States |
Area served | Worldwide |
Key people | Don Gogel (CEO), Peter Crawford (Operating Advisor) |
| Products | Private equity investments |
| Website | www |
Clayton, Dubilier & Rice, LLC (CD&R) is a private equity firm based in the United States, established in 1978 by Martin H. Dubilier, Eugene Clayton, and Bill Welsh. Operating from its headquarters in New York City, CD&R ranks among the longest-standing firms in the private equity sector worldwide. The firm has overseen investments exceeding $30 billion across nearly 90 companies, with aggregate transaction values surpassing $140 billion. Approximately 50% of its investment activities are concentrated on corporate divestitures.
The firm’s investment portfolio features holdings in companies including B&M Retail, Envision Healthcare, The Hertz Corporation, Rexel, US Foods, Sally Beauty, Diversey, VWR International, Brake Bros, FedEx Office (formerly Kinko's), Uniroyal Goodrich Tire Company, White Cap, and Lexmark. In June 2024, CD&R was ranked 11th on Private Equity International’s PEI 300 list of the world’s largest private equity firms and was recognized by GrowthCap as one of the top private equity firms for 2024.
History
Initially founded as a turnaround management company, CD&R evolved into a private equity firm following Joseph L. Rice III’s addition in 1978. The current name was adopted in 1992. Among its early landmark transactions were the leveraged buyout of Borg-Warner’s Industrial Products Division in 1987 and the acquisition of Uniroyal Goodrich Tire Company in 1988; the latter was sold to Michelin in 1989 for $1.5 billion. In 1990, CD&R established Lexmark by acquiring IBM’s printer and keyboard division—a transaction noted as one of the most impactful deals in private equity history.
During the mid-1990s, CD&R purchased Kraft Foods’ foodservice division and broadened its international presence by launching an office in London in 1998. That same year, Don Gogel assumed the role of CEO. The firm completed major acquisitions such as Culligan International for $610 million in 2003 and collaborated with Merrill Lynch and other partners to acquire The Hertz Corporation from Ford for $15 billion in 2005.
CD&R has targeted industries including healthcare, industrials, and consumer goods. In 2011, it secured a controlling interest in Hussmann from Ingersoll-Rand before divesting it to Panasonic for $1.5 billion in 2015. The firm raised $10 billion for Fund X in 2017 and acquired Capco from FIS for $477 million during the same year.
More recent notable acquisitions encompass Ply Gem Holdings and Atrium Windows & Doors (2018), SmileDirectClub (2018), American Greetings (2018), WSH Investments (2019), Socotec (2019) with a valuation near $2 billion, Epicor software from KKR for $4.7 billion (2020), Wolseley UK for £308 million (2021), Morrisons supermarket chain for £7 billion (2021), Kindred at Home hospice and personal care units from Humana for $2.8 billion (2022), Cornerstone Building Brands (2022), and OCS Group facilities services business (2022). In February 2023, CD&R reached an agreement to purchase Focus Financial Partners for more than $7 billion.
The firm is actively broadening its global footprint and is currently negotiating to acquire a 50% interest in Opella, Sanofi’s consumer healthcare division, with completion anticipated by mid-2025. Early that year, CD&R appointed Peter Crawford—former CFO of Charles Schwab—as an operating advisor and initiated a Climate Leadership Program in partnership with Columbia University aimed at advancing risk management and value creation strategies related to climate opportunities.