Printer Friendly

CLAYTON, DUBILIER & RICE AND VKM MANAGEMENT COMPLETE PURCHASE OF VAN KAMPEN MERRITT FROM XEROX

 -- Transaction Represents CD&R's Second Largest Equity Commitment --
 NEW YORK, Feb. 17 /PRNewswire/ -- Clayton Dubilier & Rice, Inc. (CD&R) and Xerox Financial Services, Inc. (NYSE: XRX), announced today that an entity formed by CD&R completed the purchase of The Van Kampen Merritt Companies, Inc. (VKM), from Xerox Financial Services, Inc. The purchase price was approximately $360 million, plus the assumption of $35 million of VKM debt.
 A fund managed by Clayton, Dubilier & Rice invested approximately $150 million in the transaction. In addition, the CD&R fund has committed to providing an additional $45 million of growth capital to the new company. The CD&R-managed fund is the majority stockholder of VKM and management and key employees will own approximately 20 percent of the equity on a fully diluted basis.
 Van Kampen Merritt, with approximately $34 billion of assets under management or supervision and approximately 500 employees, is a leading investment manager of fixed income investment products. The Chicago- area company, which Xerox acquired in 1984, sponsors, markets and provides investment advisory services to mutual funds and closed end funds and sponsors and markets unit investment trusts distributed through an independent retail network. It also provides asset management services to institutions.
 VKM is one of the insurance and other financial services businesses from which Xerox announced last month it intends to disengage.
 Joseph L. Rice, III, president of Clayton, Dubilier & Rice said, "We believe VKM fits the classic CD&R transaction profile of investing in operating units that are no longer central to the parent corporation's core strategy. We have financed the business to ensure that VKM will continue to build on its outstanding track record. In addition to a significant capital commitment in the new company, we hope CD&R's management capabilities will help support new growth initiatives."
 Mr. Rice also said, "Van Kampen Merritt is particularly well-suited to the entrepreneurial environment we strive to foster, particularly given management's substantial equity ownership stake."
 Clayton, Dubilier & Rice manages a pool of equity capital in excess of $1 billion. Since its inception in 1978, the firm has invested in 17 businesses, including VKM, which have combined sales of more than $10 billion. Prior to the VKM transaction, the firm in 1991 organized the $1.5 billion management buyout of Lexmark International, Inc. (formerly International Business Machine Corporation's Information Products Division) in which IBM Corporation retains a 10 percent equity interest.
 -0- 2/17/93
 /CONTACT: Thomas C. Franco of Broadgate Consultants, 212-229-2222, for Clayton Dubilier & Rice/


CO: Clayton, Dubilier & Rice; Van Kampen Merritt Companies, Inc. ST: New York IN: FIN SU: TNM

TM -- NY002 -- 7377 02/17/93 13:20 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 17, 1993
Words:440
Previous Article:SPECTRUM DIAGNOSTICS AND BOEHRINGER MANNHEIM GMB: A RELATIONSHIP WITH A FUTURE
Next Article:ISIS SCIENTISTS PUBLISH PRECLINICAL DATA ON ISIS 2105 FOR GENITAL WARTS
Topics:


Related Articles
INVESTMENT FIRM CHANGES NAME TO CLAYTON, DUBILIER & RICE
THE VAN KAMPEN MERRITT COMPANIES, INC. FILES FOR INITIAL PUBLIC OFFERING
XEROX TO FOCUS ON ITS CORE DOCUMENT PROCESSING BUSINESS; PLANS TO EXIT FROM INSURANCE AND OTHER FINANCIAL SERVICES
RICHARD S. BRADDOCK JOINS CLAYTON, DUBILIER & RICE, INC.
VAN KAMPEN MERRITT COMPLETES ACQUISITION OF AMERICAN CAPITAL
TRAVELERS COMPLETES SALE OF AMERICAN CAPITAL; PROCEEDS TOTAL APPROXIMATELY $430 MILLION
CLAYTON, DUBILIER & RICE AGREES TO PURCHASE KRAFT FOODSERVICE
BUYOUTS PROVIDE VALUABLE LESSONS FOR MAKING U.S. BUSINESS MORE COMPETITIVE, CLAYTON, DUBILIER & RICE PRINCIPAL TELLS ACG
Management, The Cypress Group to Buy WESCO Distribution From Clayton, Dubilier & Rice for $1.1 Billion
Clayton, Dubilier & Rice to Purchase Building Materials Business From Thyssen A.G.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters