Separately, RBS's private equity owner, Apollo Management L.P., New York, NY, has agreed to purchase Jacuzzi Brands, Inc. in a $1.25 billion deal, which includes the assumption of outstanding debt approximating $260 million, net of cash. Jacuzzi, through its subsidiaries, is a global manufacturer and distributor of branded bath and plumbing products for the residential, commercial and institutional markets.
Under the terms of the merger agreement, Jacuzzi Brands' shareholders will receive $12.50 per share in cash. The transaction will be financed through a combination of equity contributed by Apollo and debt financing. The board of directors of Jacuzzi Brands has approved the merger agreement and has recommended to Jacuzzi Brands' shareholders that they vote in favor of the transaction. Jacuzzi Brands President and CEO Al Marini and his team will continue to run the water management platform. The bath business will become an independent portfolio company of Apollo.
Thomas B. Waldin, chairman of Jacuzzi Brands, commented, "In the year since we put Al Marini in charge of our overall operations, he and his team have made significant progress in improving the bath segment and further strengthening Zurn's leadership position."