Private equity firm Clayton, Dubilier & Rice (CD&R) has agreed to acquire chemicals group Ashland’s water technologies unit for $1.8bn.
Water Technologies, which has annual sales of $1.7bn, is focused on supplying specialty chemicals and services to the pulp and paper and industrial water markets.
Over the past year, the unit has seen significant improvements in its business and financial performance, Ashland said in a statement.
CD&R partner George Jaquette said, “Ashland Water Technologies has many attractive features, including a very strong competitive position which reflects its global scale, deep set of service capabilities and innovation leadership.”
“We look forward to working with the management team to build upon the company’s market leadership position.”
Last month AltAssets reported that CD&R was nearing the target for its latest fund, which had raised $4.57bn from 146 LPs.
CDRF IX is targeting $5bn and reportedly held a first close of between $2.5bn and $3bn in July, while a document filed in August showed that the fund had raised $2.65bn.
The firm’s previous fund was closed on $5bn in January 2010, falling short of its $7.5bn target.
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