CD&R to buy PwC’s mobility unit for $2.2bn

January 2022 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

January 2022 Issue

In a takeover deal valued at $2.2bn, US private equity firm Clayton, Dubilier & Rice (CD&R) is to acquire PwC’s global mobility tax and immigration services business – a global leader in employee tax, immigration, business travel, mobility managed services and payroll solutions to multinational organisations and their employees.

The transaction will create a freestanding, global platform with more than 5700 professionals focused on a seamless cross-border experience for clients, while accelerating investment in technology and new services.

Serving more than 3000 multinational clients worldwide, PwC’s global mobility tax and immigration services business helps organisations manage global talent mobility, while providing personalised, high-quality tax and immigration services to cross-border employees, as they navigate compliance issues associated with global employment.

Throughout its more than 50-year history, the PwC business has been the leader in global mobility services, supporting its clients’ talent mobility programmes by helping solve cross-border employment challenges. Recently, the business enhanced its service offerings to reflect the changing needs of clients and their cross-border employees throughout the coronavirus (COVID-19) pandemic.

“We are excited for the opportunity to become a free-standing organisation and partner with CD&R to build on our market leadership and drive more value for clients,” said Peter Clarke, global managing partner for Global Employee Mobility at PwC. “The pandemic proved that global employment issues remain a key challenge for companies, especially as compliance requirements become more complex.

“Our partnership with CD&R will allow us to accelerate our technology investments to offer what our clients are asking for: an integrated digital experience across the entirety of the talent mobility ecosystem,” he continued. “These technology investments along with our new global operating model will support an even more differentiated service experience for our clients with the same laser focus on the quality and confidentiality of the services we provide.”

Following completion of the transaction, the business will be rebranded, with Mr Clarke as chief executive of the new company.

“CD&R has a longstanding track record of executing global carve-out transactions helping companies transition from corporate ownership to independent models,” said Stephen Shapiro, a partner at CD&R. “We believe, as a free-standing platform, PwC’s global mobility tax and immigration services business will be positioned to increase its value proposition to its world-class client base.”

The transaction is expected to close in the first half of 2022, subject to customary closing conditions, including completion of certain local works council consultations.

Deutsche Bank Securities Inc., JP Morgan, UBS Investment Bank, BMO Capital Markets Corp., BNP Paribas Securities Corp., Mizuho Financial Group Inc., RBC Capital Markets, LLC, and Societe Generale have committed financing to the transaction and are acting as financial advisers to CD&R. Debevoise & Plimpton LLP is providing legal counsel. For PwC, Morgan Stanley & Co. LLC is acting as financial adviser and Davis Polk & Wardwell LLP and Linklaters LLP are providing legal counsel.

Mr Shapiro concluded: “With significant global capabilities to support emerging trends and complexities in talent mobility, the new company is well-positioned to capitalise on the future growth of global employee mobility, as companies and economies rebound from the pandemic.”

Fraser Tennant