CLAYTON, DUBILIER & RICE (CD&R) takes majority stake in Presidio

Clayton, Dubilier & Rice and BC Partners, leading international investment firms, have agreed on a definitive transaction under which funds affiliated with CD&R acquire a majority ownership interest in technology solutions provider Presidio from BC Partners, structured on an enterprise value of $1–10bn. The selling financial sponsor reinvests proceeds to retain a minority equity shareholding alongside the executive management team led by Bob Cagnazzi. This ownership transfer concludes a five-year investment cycle under BC Partners, which had previously executed the take-private delisting of the enterprise from the Nasdaq in 2019. During that holding period, Presidio absorbed regional add-on targets, completing the acquisitions of Irish IT consultancy Arkphire as well as Charlotte, North Carolina-based systems integrator ROVE. Following transaction completion, Bill Berutti, operating partner at CD&R and former chief executive of Plex Systems, assumes the chairmanship of the board of directors. Debt financing and transaction advisory services for CD&R are handled by J.P. Morgan Securities, Citi, Wells Fargo, RBC Capital Markets, BNP Paribas Securities Corp., UBS Investment Bank, and Deutsche Bank Securities, with Debevoise & Plimpton serving as legal counsel. Sell-side financial advisors assisting BC Partners and Presidio comprise Guggenheim Securities and LionTree Advisors, alongside Kirkland & Ellis acting as legal counsel. Subject to standard regulatory clearances, final closing is anticipated in the second quarter of 2024.