Carlyle Group Inc. is nearing a deal to sell a roughly 49% stake in PurposeBuilt Brands, an owner of specialty cleaning and disinfection products, according to people with knowledge of the matter. The transaction values the company at about $1.6 billion including debt.
Carlyle purchased the three components of PurposeBuilt for roughly $800 million a year before the coronavirus pandemic began. COVID-19 increased demand for the company's products.
Carlyle's buyout had financial impacts. Interest expense increased from $1.8 million to $27.4 million per year. Carlyle charged a $1.5 million management fee. There were numerous transaction fees, totaling $34 million.
Carlyle will have free shares in PurposeBuilt going forward, after flipping 49% of the company. Private equity underwriters (PEU) preferred taxation remains firmly in place, no surprise given politicians Red and Blue love PEU, and many are one.
