American Standard Companies Board Authorizes Share Repurchase
PISCATAWAY, N.J., Oct. 31 /CNW/ -- American Standard Companies Inc.
(NYSE: ASD) today announced completion of the sale of its global Bath and
Kitchen products business to funds advised by Bain Capital Partners, LLC, a
leading private investment firm, for $1.745 billion including closing
adjustments. A definitive sales agreement had been announced on July 23,
The Bath and Kitchen products business had 2006 sales of $2.4 billion,
26,000 employees and production facilities in 23 countries worldwide. The
business manufactures and markets industry-leading products under brand names
such as American Standard(R), Ideal Standard(R), Armitage Shanks(R),
Porcher(R), Jado(R), Ceramica Dolomite(R) and Vidima(R).
"Bath and Kitchen is a business with the size, global reach, market
leadership and organizational talent to drive future success. The all-cash
payment for Bath and Kitchen provides excellent value for our shareowners, and
the net proceeds met our expectations. Now we will focus on our global Air
Conditioning Systems and Services business, which has leading market positions
in commercial and residential markets. Before the end of the year, we will
move forward with changing our name to Trane," said Fred Poses, American
Standard Companies chairman and CEO.
Combined with the March 2007 sale of Venesta Washroom Systems, American
Standard Companies' gross proceeds from the sale of Bath and Kitchen now total
$1.91 billion. The Venesta sale and the sale to Bain Capital each resulted in
an accelerated pension payment of about $26 million.
American Standard Companies intends to use the net proceeds after
expenses and taxes to repurchase common stock and reduce debt to keep the
company at investment-grade standards. The company's board of directors has
authorized an additional $750 million for the repurchase of common stock
through December 2008. The company may repurchase these shares through one or
more Rule 10b5-1 trading plans. These plans would allow the company to
repurchase shares when ordinarily prevented from doing so because of
self-imposed trading blackout periods or possible possession of material
With the purchase, Bain Capital acquires ownership and use of the
American Standard brand for bath and kitchen products. Trane will retain the
American Standard brand name for heating, ventilating and air conditioning
(HVAC) and related products.
American Standard Companies' financial advisor for the Bath and Kitchen
sale was Lazard. Skadden, Arps and Baker & McKenzie served as legal counsel.
For Bain Capital, Bank of America, N.A. and Credit Suisse led the financing,
Lehman Brothers acted as financial advisors, Kirkland & Ellis LLP served as
legal counsel, and PricewaterhouseCoopers provided transaction advisory
ABOUT AMERICAN STANDARD COMPANIES
On Feb. 1, American Standard Companies announced plans to separate its
three businesses. Since then, the company has completed the spinoff of its
Vehicle Control Systems business as an independent company known as WABCO
(NYSE: WBC) and today has sold its Bath and Kitchen business to funds advised
by Bain Capital Partners, LLC. To reflect its focus on the Air Conditioning
Systems and Services business, the company plans to change its name to Trane
by year-end. In 2006, Air Conditioning Systems and Services, sold under the
Trane(R) and American Standard(R) brands, generated revenues of $6.8 billion
with 29,000 employees.
ABOUT BAIN CAPITAL PARTNERS
Bain Capital (http://www.baincapital.com) is a global private investment
firm that manages several pools of capital including private equity, high-
yield assets, mezzanine capital and public equity with approximately $50
billion in assets under management. Since its inception in 1984, Bain Capital
has made private equity investments and add-on acquisitions in over 250
companies around the world, including such leading companies as Dunkin'
Brands, Sealy, Toys "R" Us, Michaels Stores, Burger King, SigmaKalon,
Bombardier Recreational Products, Samsonite, Sensata Technologies and Staples.
Headquartered in Boston, Bain Capital has offices in New York, London, Munich,
Hong Kong, Shanghai and Tokyo.
Comments in this news release contain certain forward-looking statements,
which are based on management's good faith expectations and belief concerning
future developments. Forward-looking statements can be identified by the use
of words such as "believe," "expect," "plans," "strategy," "prospects,"
"estimate," "project," "anticipate," "intends" and other words of similar
meaning. Actual results may differ materially from these expectations.
American Standard does not undertake any obligation to update such forward-
Additional information is available at http://www.americanstandard.com.
For further information:
For further information: Reporters may contact: Skip Colcord,
+1-732-980-3065, firstname.lastname@example.org, or Shelly London,
+1-732-980-6175, email@example.com, both of American Standard, or
Alex Stanton of Stanton Crenshaw Communications, for Bain Capital Partners,
+1-212-780-0701, firstname.lastname@example.org; or Investors and financial
analysts may contact: Bruce Fisher of American Standard, +1-732-980-6095,
email@example.com Web Site: http://www.americanstandard.com