Culligan Announces Potential $900 Million Recapitalization

    NORTHBROOK, ILL., March 30 /CNW/ - Culligan Holding,
("Culligan"), a wholly-owned subsidiary of Culligan Ltd., a leading global
provider of water treatment products and services for household and commercial
applications, today announced a potential $900 million recapitalization. The
transaction, which is subject to conditions including definitive documentation
and board approval, would include the entering into new senior secured
revolving credit and term loan facilities (up to $640.0 million anticipated
aggregate amount), together with an anticipated second lien term facility (up
to EUR 200.0 million anticipated aggregate principal amount), by Culligan and
certain of its subsidiaries.

    Culligan Ltd. expects to distribute approximately $360 million from the
recapitalization proceeds (or such lesser amount as may be determined by
Culligan Ltd. in its sole discretion) to its equity holders, including
Clayton, Dubilier & Rice Fund VI Limited Partnership ("CD&R"), which owns
approximately 83% of Culligan Ltd.'s outstanding shares. Proceeds from the
recapitalization would also be used to repay all outstanding amounts under
Culligan's current credit facility and to redeem the existing 8% Senior
Subordinated Notes due 2014 issued by Culligan Finance Corporation B.V. (the
"CFC 8% Notes"), a subsidiary of Culligan.

    "Culligan is a market leader with an outstanding dealer network and the
most recognized brand in the water treatment industry," said Mark Seals,
Culligan's chief executive officer. "Since being acquired by CD&R in 2004, the
company has made significant progress in reducing costs, improving
profitability, streamlining manufacturing, introducing new products and
services, and targeting high potential commercial market segments, such as
restaurants and hotels."

    The terms of the new credit facilities are expected to conform to those
included in a commitment letter, executed March 8, 2007, by Culligan and
certain financial institutions. The closing of the new credit facilities, the
redemption of the CFC 8% Notes and the repayment of Culligan's current credit
facility are subject to certain conditions, including the absence of any
material adverse effect on Culligan and its subsidiaries between the date of
the commitment letter and the funding closing date, and, as noted above,
Culligan Ltd.'s expected distribution to its equity holders.

    CAUTIONARY NOTE: The statements in this press release that relate to
future plans, events or performances are forward-looking statements that
involve risks and uncertainties. Culligan and its subsidiaries and affiliates
may determine not to pursue any or all of these transactions, and,
accordingly, there can be no assurance that any of these transactions will
occur. Culligan undertakes no obligation to update any such forward looking

For further information:

For further information: Outlook Marketing Services, Inc. Jodi Perkins
Phone: 847.279.0882 or Culligan International
Company Lindsay Klebenow 847.205.6000

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890