Clayton Dubilier & Rice buys majority stake in Roper Technologies for $2.6bn

Jun 1, 2022 | News | 0 comments

Roper Technologies Inc said on Wednesday it would sell a majority stake in its industrial business to private equity firm Clayton Dubilier & Rice LLC for $2.6bn as it seeks to focus on its software business.

The industrial solutions and software firm will keep a 49% stake in the business which will be spun off into a standalone company, it said in a statement.

“Selling a majority interest in these industrial businesses will provide Roper with significant upfront cash, while maintaining the ability to receive additional cash proceeds from the future exit of our minority interest,” Chief Executive Officer Neil Hunn said.

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Hunn hinted at future deals and said the transaction would expand Roper’s “M&A firepower” to $7 billion.

Roper started as a pump and home appliances maker in the 1890s and got listed in 1992. In August 2020, it acquired insurance software maker Vertafore for $5.35 billion, its most expensive purchase to date.

Roper said it was divesting stake in units engaged in rubber-polymer testing, metering solutions from oil and gas industries and its pump-making company, Roper Pump.

Evercore advised Roper Technologies, while UBS Investment Bank, RBC Capital Markets and BNP Paribas were lead financial advisers to Clayton Dubilier.

Source: Reuters

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