American Standard Companies (NYSE: ASD) is going through an extreme makeover. The company plans to spin off its Vehicle Control Systems division (which will be called WABCO) and wants to focus on its air condition business. So, the name of the reconstituted entity will be Trane (which generates about $6.8 billion in revenues).To this end, today American Standard said it sold its Bath and Kitchen products unit to private equity firm, Bain Capital. The price tag: $1.76 billion, cash.
Actually, it looks like a good deal for Bain. The Bath & Kitchen unit posted $2.4 billion in revenues in 2006 and has a variety of brands like American Standard, Ideal Standard, Armitage Shanks, Porcher, Jado, Ceramica Dolomite and Vidima.
Then again, the unit has been under pressure lately. For example, increased commodities prices has been tough.
But, by being a private company – and independent of a major parent – there's likely to be some operational improvements.
American Standard retained Lazard (NYSE: LAZ) for its financial advisor. Lehman Brothers (NYSE: LEH) represented Bain.
In today's trading, American Standard's stock price was up $0.15 to $59.40.
To check out some more recent M&A transactions, click here.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
